When a concave downward function is present, increasing advertising expenditures result in

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In the past, creatives designing business-to-business advertisements relied heavily on the verbal or writtenelement rather than on visuals. In recent years, there has been a shift to using stronger visual elements inbusiness-to-business advertisements.

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In terms of the relationship between expenditures on advertising communications and subsequent salesrevenues, too many marketing managers assume that there is a(n):

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As consumers see advertisements over time they become more likely to recall a message and purchase aproduct. This demonstrates:

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The early effects of an advertising campaign may be minimal, but over time gain momentum. Thisphenomenon is:

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When BMW motorcycle advertisements began targeting females, the initial impact was minimal, but aftersome time passed the ads began to have an impact on inquiries by females and later on sales revenues. Thisillustrates:

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The sales-response function curve models the ________ of advertising.

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Pepsi and Coke both have reached the point that investing more dollars in advertising yields smaller increasesin sales. Which is present?

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When a concave downward function is present, increasing advertising expenditures result in:

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Which suggests that further advertising and promotion expenditures may result in adverse effects on profits?

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Which concept explains that consumers may recall an ad from the past and make a purchase because they haveseen the ad several times?

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Sandra recalls seeing an advertisement for Philadelphia Cream Cheese highlighting that the brand produces achocolate version, which illustrates the:

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Manufacturers of appliances, such as GE and Whirlpool, advertise on a continuous basis because appliancesare purchased infrequently and only when they are needed. To ensure the brand name is more likelyremembered when the need arises, these manufacturers rely on:

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Which is present when consumers begin to think of an advertisement as old or stale?

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When consumers begin to forget a brand name because advertising messages have stopped, it is a sign of:

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journal article

A Pure Birth Model of Optimal Advertising with Word-Of-Mouth

Marketing Science

Vol. 3, No. 2 (Spring, 1984)

, pp. 169-178 (10 pages)

Published By: INFORMS

https://www.jstor.org/stable/183749

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Abstract

A stochastic, dynamic model of advertising, which incorporates both advertising and word-of-mouth effects, is formulated. The time between the acquisition of new customers is assumed to be random. The distribution of the time until the firm obtains a new customer depends upon the rate of advertising expenditures and upon a word-of-mouth parameter. The problem of choosing the rate of advertising expenditures so as to maximize long-run expected profit is formulated as a continuous-time Markov decision chain. The impact of changes in various parameters of the model on optimal advertising decisions is studied.

Journal Information

Discover the latest findings in the global marketplace with detailed results prepared through rigorous scientific methodology. Reviewed by prestigious scholars in the field of marketing science, articles often feature game theory, econometrics, multivariate analysis, econometric modeling, and choice models. Advertising Consumer choice modeling Interactions between manufacturers and retailers Market research Pricing decisions Purchase behavior Revenue forecasting

Publisher Information

With over 12,500 members from around the globe, INFORMS is the leading international association for professionals in operations research and analytics. INFORMS promotes best practices and advances in operations research, management science, and analytics to improve operational processes, decision-making, and outcomes through an array of highly-cited publications, conferences, competitions, networking communities, and professional development services.

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Marketing Science © 1984 INFORMS
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Which of the following factors creates a positive relationship between advertising and sales?

The basis for product differentiation creates a positive relationship between advertising and sales.

When a customer prefers a specific brand it is called?

With brand preference, a customer prefers one brand over competing brands and will purchase it if available.

Which step immediately follows awareness in the hierarchy of effects model?

The hierarchy of effects model consists of three major stages: the cognitive stage (awareness, knowledge); the affective stage (liking, preference, conviction); and the behavioral stage (purchase).

Which approach suggests that one ad exposure is enough to affect an audience when that person or business needs the product or has an interest in the product?

Which approach suggests that one ad exposure is enough to affect an audience when that person or business needs the product or has an interest in the product? Recency theory is based on the: belief that consumers have selective attention.