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Advertising expenditure Adams and brock(1990) report that the big three car producers in the United states, which are ranked among the largest advertisers in the country, happen to have different advertising-to-sales ratios In 1986 the largest producer, Gm(which spent $285 million on advertising ) spent $63 per car, whereas Ford spent $130 and Chrysler spent $113 per car (though they spent less overall than GM) This may hint of economies of scale in car advertisingAdvertising Expenditure • Adams and Brock (1990) report that the Big Three car producers in the United States, which are ranked among the largest advertisers in the country, happen to have different advertising-to-sales ratios. • In 1986 the largest producer, GM (which spent $285 million on advertising), spent $63 per car, whereas Ford spent $130 and Chrysler spent $113 per car (though they spent less overall than GM). • This may hint of economies of scale in car advertising
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