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Advertising costs as a percentage of sales revenue for soft drink brands with large market shares (such as Coca-Cola and Pepsi-Cola) are lower than for

Advertising costs as a percentage of sales revenue for soft drink brands with large market shares (such as Coca-Cola and Pepsi-Cola) are lower than for brands with small market shares (Dr. Pepper, Schweppes, Fresca). This is because:

A.

Big brands can negotiate lower rates with advertising agencies and media owners

B.

Advertising campaigns are subject to a large minimum budgets (indivisibilities)

C.

Economies of learninglong-established brands such as Coca-Cola and Pepsi have learned how to be more efficient in their advertising campaigns

D.

None of the above.

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