New Products Provide a Classic Case of the Consumer Information

question 36

Multiple Choice

New products provide a classic case of the consumer information problem. However, in some cases consumers partially solve the problem by trusting the "brand name" of the producer of the new product. Because firms spend millions of dollars advertising and maintaining their brand names, the likelihood of a "brand name" firm intentionally selling a dangerous or shoddy new product is

• A) high because big firms are always after a quick dollar.
• B) high because their brand name is a communal property right.
• C) low because big firms do not make mistakes.
• D) low because the firm with a brand name has a lot to lose if word spreads about bad consumer experiences.

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Definitions:

Personal Selling Process

A series of steps a salesperson follows to persuade potential customers to buy a product or service, usually involving personalized interactions.

Personal Selling Process

A series of steps that a salesperson follows to persuade potential buyers to make a purchase, including prospecting, approach, presentation, handling objections, closing, and follow-up.

Presentation Stage

The phase in a project or process where findings, concepts, or products are displayed or communicated to an audience.

Follow-up Stage

The phase in a project or process that involves monitoring outcomes and making any necessary adjustments after the initial implementation.