Managers have unrealistic expectations about a communications budget when they assume there is a direct relationship between expenditures on advertising and subsequent sales revenues.

Question

Quizplus · Accepted Answer

There are many other factors that can influence sales besides advertising, such as product quality, competition, economic conditions, and consumer behavior. Therefore, it is not always possible to predict or guarantee a certain level of return on investment (ROI) for a communications budget based solely on ad spending.

Managers Have Unrealistic Expectations About a Communications Budget When They