Question: Brand managers know that increasing promotional budgets eventually result in diminishing returns. The first one million dollars typically results in a 26% increase in awareness,
Brand managers know that increasing promotional budgets eventually result in diminishing returns. The first one million dollars typically results in a 26% increase in awareness, while the second million results in adding another 18% and the third million in a 5% increase. Andrews's product Axe currently has an awareness level of 80% . While an important product for Andrews, Axe's promotion budget will be reduced to one million dollars for the upcoming year. Assuming that Axe loses one-third of its awareness each year, what will Axe's awareness level be next year?
a. 58%
b. 53%
c. 74%
d. 79%
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