Which of the following statements about the interaction of pricing with advertising and promotion is true?
A. The positive relationship between high relative advertising and price levels is weakest for products in the introductory stage of the product life cycle.
B. The positive relationship between high relative advertising and price levels is weakest for products that are market leaders.
C. Companies with high-quality products are damaged the least, in terms of return on investment, by inconsistent advertising and pricing strategies.
D. Brands with low relative advertising budgets are able to charge premium prices.
E. High relative ad expenditures should accompany premium prices, and low relative ad expenditures should be tailored to low prices.
Answer: E