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New Brands with Small Market Shares Tend to Spend More

Question 16

Multiple Choice

New brands with small market shares tend to spend more on advertising and sales promotions than those with large market shares because:


A) a certain minimum level of exposure is needed to measurably affect purchase habits.
B) spending more will inhibit the advertising response function.
C) returns multiply exponentially after a certain level of spending.
D) the percentage of growth in market share is directly proportionate to the amount of money spent on advertising.

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