New brands with small market shares tend to spend higher on advertising and sales promotions than those with large market shares because: Group of answer choices spending more will inhibit the advertising response function. the value of market shares is directly proportionate to the amount of money spent on advertising. returns multiply beyond a certain level of spending. a certain minimum level of exposure is needed to measurably affect purchase habits.

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Ireland

Business

14 January, 22:43

New brands with small market shares tend to spend higher on advertising and sales promotions than those with large market shares because: Group of answer choices spending more will inhibit the advertising response function. the value of market shares is directly proportionate to the amount of money spent on advertising. returns multiply beyond a certain level of spending. a certain minimum level of exposure is needed to measurably affect purchase habits.

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Morgan Rivera · Answer 1

The value of market shares is directly proportionate to the amount of money spent on advertising

Explanation:

Advertising is part and parcel of promotion, which is targeted at encouraging customers to buy one's product by taking them through the AIDA sequence of promotion.

AIDA is an acronym for Awareness, Interest, Desire and Action, where creating awareness by bringing the products to the attention of the customers through advertising results in interest and desire being aroused and eventually leading to action of buying the product which ultimately leads to repeat buying and increase in market share overall.