A problem with advertising is that beyond a certain ad spending level, diminishing returns tend to set in. That is, market share stops growing-or even begins to decline-despite continued spending. This is known as ________.
A) the advertising market concept
B) the advertising response function
C) advertising wear out
D) advertising reach
E) advertising execution

Question

Quizplus · Accepted Answer

The given scenario is describing the Advertising Response Function, which refers to the point after which the effectiveness of advertising diminishes with an increase in spending. Option A and D are not relevant to the given scenario, while option C refers to the point where an ad becomes stale and loses its effectiveness after repeated exposure. Option E refers to the process of creating and producing the actual advertisement.

A Problem with Advertising Is That Beyond a Certain Ad