1. In your own words, explain why it is extremely difficult to estimate sales-to-advertising response functions.
2. Established brands’ shares of market tend to exceed their advertising shares of voice, whereas unestablished brands’ SOVs often exceed their SOMs. Using the concept of competitive interference as your point of departure, explain these relationships.
3. Construct a picture to represent your understanding of how the encoding variability hypothesis applies in an advertising context. Use an actual brand for illustration purposes.
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