The displacement rate indicates what percentage of consumers would have made a purchase regardless of what?

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Prepare for ASU's MKT300 Exam 4 with engaging questions. Utilize flashcards and multiple-choice formats with helpful hints and explanations. Ace your exam!

The concept of displacement rate is essential in understanding consumer behavior, particularly how an advertising campaign influences purchasing decisions. When we refer to the displacement rate, we are examining the proportion of consumers who would have made a purchase in the absence of a particular marketing effort, in this case, an advertising campaign.

This metric helps marketers evaluate the effectiveness of their advertising strategies by identifying how many purchases were captured that may not have occurred without the influence of advertising. A high displacement rate indicates that the advertising campaign significantly swayed consumer behavior, encouraging purchases that may not have happened otherwise.

Conversely, factors like competitor pricing strategies, product promotions, and general market demand are external influences but do not specifically pertain to the isolated impact of the advertising campaign on consumer purchasing decisions. These elements may play a role in the overall market dynamics, but they do not directly measure the campaign's effectiveness or the proportion of consumers who purchased strictly due to that advertising effort. Therefore, the answer focusing on the advertising campaign is directly aligned with the definition of displacement rate in this context.

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