When The Home Depot introduced its Expo Design retailing concept, it spent several billion dollars on advertising and other promotions and successfully boosted its market share. As an advertising consultant, what would you advise The Home Depot to do?
a. shift the budget dollars from advertising to sales promotion and personal selling due to a change in the product life-cycle stage
b. focus on maintaining market share and spend proportionately less on advertising because additional expenditures would reap diminishing benefits
c. maintain the current advertising budget and continue to focus on brand awareness and market share gains
d. slowly increase the amount spent on advertising and promotion to offset competitive advertisements
Ans: b. focus on maintaining market share and spend proportionately less on advertising because additional expenditures would reap diminishing benefits
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At the end of its first year of operations, Shapiro's Consulting Services reported net income of $27,000. They also had account balances of: Cash, $16,000; Office Supplies, $3,200, Equipment, $24,000 and Accounts Receivable, $8,000. The owner's total investment for this first year was $15,000 and the owner withdrew $2,000 for personal use. Calculate the ending balance to be reported on the Statement of Owner's Equity in the Owner's Capital account.
A. $58,000
B. $27,000
C. $42,200
D. $40,000
The responses obtained from the pretest should be coded and analyzed
Indicate whether the statement is true or false