A marketing firm decides to purchase media time in an attempt to sell its new product.After purchasing approximately $1 million 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:

Question

Quizplus · Accepted Answer

An S-shaped response is characterized by a slow start, followed by a period of rapid growth and then a plateau. In this scenario, the initial $1 million investment may have been too low to create any significant impact on sales, whereas the larger investment of $3 million triggered a noticeable response in sales. This pattern resembles an S-shaped response. Therefore, the best explanation for the observed increase in sales is an S-shaped response.

A Marketing Firm Decides to Purchase Media Time in an Attempt