Which of the Following Statements Regarding Brand Names in Advertising

question 297

Multiple Choice

Which of the following statements regarding brand names in advertising is not correct?

• A)Brand names provide consumers with information about quality when quality cannot be easily judged in advance of purchase.
• B)Brand names give firms an incentive to maintain high quality to maintain the reputation of the firm.
• C)Brand names allow firms to produce and sell inferior products in the long run since people will continue to purchase the brand-name product.
• D)Brand names can cause consumers to perceive differences in products that do not actually exist.

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Definitions:

Triple Bottom Line

An accounting framework that goes beyond the traditional profit measure to include social and environmental dimensions.

Company Values

The core principles and beliefs that guide the behaviors, decision-making processes, and cultural environment of an organization.

Reinforce

The action of strengthening or supporting an idea, value, or physical structure to ensure its endurance or credibility.

CEO Activism

The actions and efforts of chief executive officers to publicly address and influence social, environmental, and political issues outside of their company's immediate business interests.