Which of the following statements about the relationship of advertising to sales and profits is most likely true?

Question

Quizplus · Accepted Answer

Market share increases are often more directly related to marketing budget increases (including advertising) than to price reductions. This is because advertising can create brand awareness and increase the perceived value of a product, whereas price reductions can sometimes cheapen the perception of a product.

B, C, D, and E are all incorrect. Sales can be influenced by additional advertising investments, online advertising is not the only way to generate sales, advertising can have both short-term and long-term effects, and there is a saturation level for advertising where further investment does not provide proportional returns.

Which of the Following Statements About the Relationship of Advertising