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Advertising Costs as a Percentage of Sales Revenue for Soft

Question 47

Multiple Choice

Advertising costs as a percentage of sales revenue for soft drink brands with large market shares (such as Coca-Cola and Pepsi-Cola) are lower than for brands with small market shares (Dr.Pepper,Schweppes,Fresca) .This is because:


A) Advertising campaigns are subject to a large minimum budgets ("indivisibilities")
B) Big brands can negotiate lower rates with advertising agencies and media owners
C) Economies of learning-long-established brands such as Coca-Cola and Pepsi have learned how to be more efficient in their advertising campaigns
D) Economies of global advertising campaigns

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