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

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Definitions:

Efficient

Efficient describes achieving maximum productivity with minimum wasted effort or expense, often relating to the optimal use of resources to obtain a desired outcome.

Bureaucratic Organization

A structured administrative system governing any large institution, characterized by fixed rules, a hierarchy of authority, and a detailed division of labor.

Bouncers

Security personnel employed at venues like bars, nightclubs, or concerts to ensure safety, enforce rules, and manage entry.

Specialized Task

A job or duty that requires specific skills or expertise, usually assigned to someone proficient in that area.