A package coupon has _____ because an initial purchase may ...

[mcmcdaniel]

A package coupon has _____ because an initial purchase may stimulate another purchase.
 a. repeat value
  b. dual value
  c. bounce-back value
  d. cross value
  e. come-back value

Question 2

Explain the sales-to-advertising response function and why it is rarely used to determine marcom budgets.

[macagnavarro]

Answer to Question 1

c

Answer to Question 2

The sales-to advertising response function refers to the relationship between money invested in advertising and the response, or output, of that investment in terms of revenue generated. It is a mathematical function that maps the relationship between an output (i.e., sales revenue) to each meaningful level of an input (i.e., advertising expenditures). If marcom personnel could accurately estimate the sales-to-advertising response function, then setting the budget to maximize profits would be simple. However, because the S-to-A response function is influenced by many factors (i.e., creativity of advertising execution, the state of the economy, the intensity of competitive advertising efforts, the overall quality of the brand's marketing mix, etc.) and not solely by the amount of advertising investment, it is difficult to know with any certainty what amount of sales a particular level of advertising expenditures will generate. So it is extremely difficult, if not impossible, to derive anything approximating an accurate S-to-A response function.