Which of the following statements about the interaction of pricing with advertising and promotion is true?
A)The positive relationship between high relative advertising and price levels is weakest for products in the introductory stage of the product life cycle.
B)The positive relationship between high relative advertising and price levels is weakest for products that are market leaders.
C)Companies with high-quality products suffer the least, in terms of return on investment, with inconsistent advertising and pricing strategies.
D)Brands with low relative advertising budgets are able to charge premium prices.
E)High relative ad expenditures should accompany premium prices, and low relative ad expenditures should be tailored to low prices.

Question

Quizplus · Accepted Answer

The statement E is true. High relative ad expenditures should accompany premium prices to support the perceived value of the product. On the other hand, low relative ad expenditures can be tailored to low prices to appeal to price-sensitive consumers. The other statements are either false or do not have enough supporting evidence.

Which of the Following Statements About the Interaction of Pricing