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:

Endorphins

Natural, pain-relieving chemicals produced by the body that also contribute to feelings of pleasure.

Auditory Stimulation

The process of exciting the auditory system through the use of sound, which can influence various psychological and physiological responses.

Time Lag

The delay or period between the initiation of an action or process and its effect or outcome.

Accurately

With precision and correctness, without errors or distortions.