One of Your Classmates Asserts That Advertising, Marketing Research, and Brand

question 226

Multiple Choice

One of your classmates asserts that advertising, marketing research, and brand management are redundant expenditures because a firm can obtain the same information by simply looking at what customers are already buying.Which of the following is not a response you might offer her?

• A)Conducting market research is a good way for firms to keep abreast of changing consumer tastes and preferences.
• B)Advertising and brand management allow a firm to create an entry barrier which will insulate the firm from competition and from undertaking further product innovations.
• C)Marketing research could allow a firm to identify new market opportunities and at least, in the short run, a firm can make a profit supplying products to this market segment.
• D)If a firm successfully manages its brand, customers become less price sensitive as they perceive fewer substitutes for the firm's brand.

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Definitions:

Functional Needs

The basic or practical needs that a product or service fulfills for the customer.

Affective Component

A component of attitude that reflects what a person feels about the issue at hand—his or her like or dislike of something.

Psychological

Pertaining to the mind or mental processes, affecting or involving the psychological state.

Lululemon Customers

Lululemon customers are individuals or groups who purchase athletic apparel and accessories from the Lululemon brand, known for its yoga and fitness-related products.