Smaller competitors in an industry typically have to invest relatively larger percentages of their sales revenues in advertising than do larger competitors.

Question

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Smaller competitors often have to spend more on advertising to gain market share and compete with larger competitors, who may have established brand recognition and customer loyalty. Therefore, smaller competitors' advertising expenditures as a percentage of their sales revenues are usually higher than those of larger competitors.

Smaller Competitors in an Industry Typically Have to Invest Relatively