From an Economic Perspective,advertising Might Lower the Cost of a Product

question 50

Multiple Choice

From an economic perspective,advertising might lower the cost of a product by:

• A)creating barriers to entry for less efficient and smaller firms.
• B)moving consumers to the consumer socialization stage of the buying process.
• C)making it possible for firms to realize economies of scale through expansion of sales volume.
• D)allowing firms to advertise at high levels along with competitors.
• E)creating brand loyalties and by helping to retain more customers.

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Definitions:

General Guidelines

Broad and nonspecific rules or principles that provide a framework within which actions can be taken.

Maintaining Goodwill

The effort to preserve or enhance positive relationships and reputation with others, often through ethical behavior and communication.

Buffers

Statements or elements in communication that soften the impact of a message, often used to prepare the recipient for bad news or criticism.

Apologize

Expressing regret or sorrow for having wronged someone, often as a way to repair a relationship.