Would threshold effects, diminishing returns, and wearout effects apply to Jakes upcoming advertising program? Explain why or
Question:
Would threshold effects, diminishing returns, and wearout effects apply to Jake’s upcoming advertising program?
Explain why or why not.
Jake Brown was about to begin an exciting new phase in his business. His original retail outlet, Jake’s Trophy Shop, located in the east-central part of Kansas City, Missouri, had reached its peak. It was time to expand to a second location, which would be on the south side of town close to the Kansas border (Overland Park and other nearby suburbs), where a great deal of population growth had taken place. Along with new residential neighborhoods in that part of the city, many larger companies had opened offices in that area.
The marketplace for trophies includes several types of customers.
One large group includes the many children’s sports programs in the community, from little league baseball, to soccer, basketball, football, tennis, gymnastics, swimming, and others. The buyers for trophies for this age group include sports leagues such as those provided by the YMCA, individual team sponsors, and occasionally parents and/or team coaches.
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