According to the S-shaped response curve:
A) the effects of advertising quickly begin to diminish
B) the carryover effect is especially true for low-priced, frequently purchased consumer products
C) sales are not directly related to the size of the advertising budget
D) initial outlays of the advertising budget have a substantial impact on sales

Question

Quizplus · Accepted Answer

The S-shaped response curve suggests that sales do not increase proportionally with the advertising budget. Initially, small increases in the budget have little effect, then a threshold is reached where sales increase significantly, and finally, further increases in the budget yield diminishing returns.

According to the S-Shaped Response Curve