Which of the Following Statements Is True of Using Marketing

question 21

Multiple Choice

Which of the following statements is true of using marketing to shape perceptions and expectations?

• A) Preannouncements reduce excitement about a product before its release.
• B) A firm that aggressively promotes its products loses its actual installed base and its perceived installed base.
• C) A firm should avoid using vaporware if other vendors beat the firm to market and the firm fears that customers may select a dominant design.
• D) A firm can signal its commitment to an industry by making substantial investments that would be difficult to reverse.

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Definitions:

Public Park

An area of open space provided for recreational use, usually owned and maintained by a city or national government.

Marginal Social Benefit

The additional benefit received by society from the consumption of one more unit of a good or service.

Public Park

A plot of land set aside by a government or community for recreational use by the public, often maintained with public funds.

Socially Optimum

A condition in economics where the allocation of resources maximizes the overall utility or welfare of society.