According to the concave-downward model:
A)the effects of advertising quickly begin to diminish.
B)the carryover effect is especially true for low-priced, frequently purchased consumer products.
C)sales decrease rapidly if the price is too high.
D)initial outlays of the advertising budget have little impact on sales.
E)sales are not directly related to the size of the advertising budget.

Question

Quizplus · Accepted Answer

According to the concave-downward model, the effects of advertising quickly begin to diminish, which means that sales will not keep increasing at the same rate with an increase in the advertising budget. This is because consumers may become saturated with the advertisement or may start to view the product as less valuable over time.

According to the Concave-Downward Model