The selection of a target audience is based on leverage. Which statement is NOT correct for leverage?

Question

Quizplus · Accepted Answer

The statement "Brand switchers have overall high leverage" is not correct. In fact, brand switchers have low leverage because they are not loyal to a particular brand and are more likely to switch based on price or other factors. Leverage refers to the magnitude of change in sales in response to a change in marketing effort or expenditure, and it varies based on the target audience and the stage of the product life cycle. New category users tend to have high leverage because they are not familiar with the product and are more receptive to marketing efforts. Other-brand loyals may have low leverage because they are already loyal to a specific brand and may be less likely to switch.

The Selection of a Target Audience Is Based on Leverage