Obviously, billions of dollars would not be spent on advertising every year if it were not effective. Using the concepts below, explain why advertising is effective and how companies use it so that it has the greatest impact. Drive-reduction Theory-The idea that a psychological need creates an aroused tension state that motivates an organism to satisfy the need Arousal Theory- Maslow's Hierarchy of Needs James-Lange Theory Cannon-Bard Theory Schachter Two-Factory Theory