Why Do Many Brands with a Large Market Share Spend

question 13

Multiple Choice

Why do many brands with a large market share spend proportionally less on advertising compared to brands with small market share?

• A) The firms with large market share do not understand the advertising-to-sales relationship.
• B) Certain industries have a practice of spending a low amount of dollars,relative to sales,on advertising.
• C) Beyond a certain volume of promotion,diminishing returns set in.
• D) There is no minimum level of exposure for advertising to have an effect on sales.

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Definitions:

Connective

This tissue type supports, connects, or separates different types of tissues and organs in the body.

Exchange of Gases

The process by which oxygen is taken into the body and carbon dioxide is expelled, occurring primarily in the lungs.

Transitional Epithelium

A type of epithelium characterized by its ability to stretch and change shape, found in the urinary tract.

Simple Squamous Epithelium

A single layer of flat cells lining surfaces involved in diffusion and filtration, such as blood vessels and lungs.