Which of the following is an example of the business-stealing effect in advertising? Jo Bakery's advertising campaign:
A)increases the demand for baked goods in the city.
B)raises Jo's sales at the expense of sales by rival bakeries.
C)raises Jo's costs more than it increases Jo's sales.
D)creates a trade-off between quantity sold and price.

Question

Quizplus · Accepted Answer

The business-stealing effect refers to the situation where an increase in the sales of one firm is achieved by drawing customers away from rival firms. In this case, Jo Bakery's advertising campaign is likely to attract customers away from competitors and increase sales at the expense of other bakeries.

Which of the Following Is an Example of the Business-Stealing