Two Bottles of Body Wash Sit Side-By-Side in a Grocery

question 435

Multiple Choice

Two bottles of body wash sit side-by-side in a grocery store: Olay (a brand name) sells for $6.00, while Up and Up (not a brand name) sells for $3.00. Even defenders of brand names would have to admit that

• A)no rational consumer would spend twice as much for Olay as she would for Up and Up.
• B)the side-by-side presence of these two body washes conveys no useful information to consumers.
• C)Olay has no incentive to maintain the quality of its product just because of the Olay brand name.
• D)None of the above is correct.

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Definitions:

Message Received

The conveyance and understanding of a communicated idea or information by the intended recipient.

Encoding

The process of converting information into a form that can be transmitted and understood by a receiver.

Meeting

A gathering of individuals or groups to discuss, decide, or collaborate on topics and issues, often with a structured agenda.

Personal Selling

A marketing strategy involving direct interaction between a sales representative and prospective buyers to finalize a sale.