When a product has a relatively high share of market and the competitor has a high share of voice,it is best to _____.
A) increase advertising expenditures
B) decrease advertising expenditures
C) cut prices
D) aggressively attack the competitor
E) increase prices

Question

When a product has a relatively high share of market and the competitor has a high share of voice,it is best to _____.
A) increase advertising expenditures 
B) decrease advertising expenditures 
C) cut prices 
D) aggressively attack the competitor 
E) increase prices

Quizplus · Accepted Answer

When a product has a relatively high share of market and the competitor has a high share of voice, it means that the competitor is investing heavily in advertising to attract customers despite having a lower market share. In such a scenario, increasing advertising expenditures can help the company maintain its market share and attract new customers. Reducing advertising expenditures or cutting prices may result in decreased profitability, while aggressively attacking the competitor may harm the reputation of the brand. Increasing prices may not be ideal as it may make the product less competitive in the market. Hence, increasing advertising expenditures is the best choice.

When a Product Has a Relatively High Share of Market