A marketing firm decides to purchase media time in an attempt to sell its new product.After purchasing approximately $1 million dollars of time,it has noticed no impact on the sales of the product.However,at $3 million,a substantial increase is shown.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

An S-shaped response curve suggests that there is a threshold point at which additional media spending begins to generate a more significant impact on sales. In this scenario, the initial $1 million in media spending did not have enough impact to show on sales, but the substantial increase in sales after $3 million suggests that the response curve is S-shaped, indicating that there is a threshold point before the effect on sales begins to increase significantly.

A Marketing Firm Decides to Purchase Media Time in an Attempt