Threshold effects occur at the point at which the advertising program begins to have a significant impact on consumer responses.
The term "threshold effect" refers to the cumulative result of continuous advertising over time when the effect of the advertising is seen in the form of customer recognition that is shown through an increase in sales. The threshold effect is a term used to describe a phenomena that occurs when sales exceed a particular quantitative threshold.
Threshold effect is the point at which a specific brand or product is recognized or enhanced in customer awareness. The goal of a business would be to lower this threshold that is to lower the price and the length of time before the customer begins to recognize the brand or product.
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