Question: 3. Brand managers know that increasing promotional budgets eventually result in diminishing returns. The first one million dollars typically results in a 26% increase in

3. Brand managers know that increasing promotional budgets eventually result in

3. 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 Able currently has an awareness level of 79% . While an important product for Andrews, Able's promotion budget will be reduced to one million dollars for the upcoming year. Assuming that Able loses one-third of its awareness each year, what will Able's awareness level be next year

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