In deciding on an ad budget, marketers must also recognize that consumer response can be ________-shaped: An ad threshold effect exists where some positive amount of advertising is necessary before any sales impact can be detected, but sales increases eventually flatten out.

Question

Quizplus · Accepted Answer

The correct answer is S-shaped, indicating that initially, advertising has little impact until a certain threshold is reached, after which sales increase significantly with additional advertising, but eventually, the rate of sales increase diminishes, leading to a leveling off. This pattern resembles the shape of the letter "S".

In Deciding on an Ad Budget, Marketers Must Also Recognize