According to the Signalling Theory of Advertising,how Do Consumers Respond

question 22

Multiple Choice

According to the signalling theory of advertising,how do consumers respond to advertising

• A)They pay little or no attention to which firms advertise and which firms do not advertise.
• B)They are often more impressed by a firm's willingness to spend money on advertising than they are by the content of the advertisement.
• C)They are often more impressed by low-cost advertisements than they are by high-cost advertisements.
• D)They gain little or no information about product quality from advertisements.

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Definitions:

Revenue Management

The strategic use of pricing, timing, and other variables to maximize income, often used in hotel, airline, and event ticketing industries.

Expected Profit

A forecasted financial gain, derived from projecting future income and deducting anticipated costs.

Sanitary Landfill

A waste disposal site where trash is isolated from the environment until it is safe to be integrated into the natural environment, typically involving lining and management systems to minimize environmental impact.

Differential Pricing

The practice of charging different prices for the same product or service in different markets or to different buyers, based on varying demand and willingness to pay.