Well known brand name products do not receive incremental advantages from increased dollar expenditures on advertising.Once the ad hits the market,subsequent budget increases result in little or no incremental gains.This might best be explained by:
A)arbitrary allocation
B)the objective and task method
C)competitive parity
D)an S-shaped response
E)rapidly diminishing returns

Question

Quizplus · Accepted Answer

This phenomenon is commonly known as the law of diminishing returns, where after a certain point, additional investments in advertising do not result in significant or proportional returns. In the case of well-known brand name products, their market position and reputation are already established, and additional advertising expenditures do not create significant improvements. Therefore, the best explanation for this scenario is E, rapidly diminishing returns.

Well Known Brand Name Products Do Not Receive Incremental Advantages