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Why Do Brands with a Large Market Share Spend Proportionally

Question 24

Multiple Choice
Why do brands with a large market share spend proportionally less on advertising compared to brands with a small market share?

Why do brands with a large market share spend proportionally less on advertising compared to brands with a small market share?


A) Diminishing returns set in beyond a certain level of spending for advertising.
B) Certain industries have a practice of spending more for sales than for advertising.
C) A minimum level of exposure is required for advertising to have an effect on sales.
D) Advertising will not stimulate economic growth for the industry.

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