Why Is Advertising an Effective Signal of Quality in an Experience

question 19

Multiple Choice

Why is advertising an effective signal of quality in an experience good?

• A)Consumers are uninformed and need advertising to provide information
• B)Advertising lists the qualities of a product
• C)Consumers believe firms that can afford to heavily advertise sell quality products
• D)Sellers can ignore low quality issues in their advertisements
• E)Consumers believe advertising more than word of mouth information

---

Definitions:

Pascal's Triangle

A triangular array of numbers in which the edges are 1's, and each interior number is the sum of the two numbers directly above it.

Binomial Coefficient

The number of ways to choose a fixed number of elements out of a larger set, commonly represented as "n choose k."

Expansion

The process of expressing something in an extended form, often used in mathematics to denote the development of an algebraic expression or series.

N Th Term

A term in a sequence or series that is specified by its position (n), often expressed as a formula in terms of n.