Question

New brands with a small market share tend to spend proportionately more for advertising and sales promotion than those with a large market share because___________.

a. Beyond a certain level of spending, diminishing returns set in.
b. New brands require higher spending to reach a minimum level of exposure needed to affect purchase habits.
c. Advertising is utilized for maintaining brand awareness and market share.

Answer 1

b. New brands require higher spending to reach a minimum level of exposure needed to affect purchase habits

Step-by-step explanation:

New brands with a small market share tend to spend proportionately more for advertising and sales promotion than those with a large market share because a certain minimum level of exposure is needed to measurably affect purchase habits.