The View That Advertising Serves as a Source of Information

question 71

Multiple Choice

The view that advertising serves as a source of information suggests that advertising is:

• A)a low-cost way of providing information on price and quality of products and making markets work better.
• B)a way of creating artificial product differentiation that induces consumers to buy products they really do not demand.
• C)effective only when it is used by monopolists.
• D)beneficial to consumers but adds to a firm's irrecoverable costs of production.

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Definitions:

Kotler and Armstrong

Refer to authors Philip Kotler and Gary Armstrong, known for their contributions to marketing principles and textbooks.

Collecting Data

The process of gathering information from various sources for analysis in order to make informed decisions or understand trends.

Market Research

The process of gathering, analyzing, and interpreting information about a market, including about the potential customers and competitors.

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers to purchase its products, traditionally categorized into product, price, place, and promotion.