One of Your Classmates Asserts That Advertising, Marketing Research, and Brand

question 226

Multiple Choice

One of your classmates asserts that advertising, marketing research, and brand management are redundant expenditures because a firm can obtain the same information by simply looking at what customers are already buying.Which of the following is not a response you might offer her?

• A)Conducting market research is a good way for firms to keep abreast of changing consumer tastes and preferences.
• B)Advertising and brand management allow a firm to create an entry barrier which will insulate the firm from competition and from undertaking further product innovations.
• C)Marketing research could allow a firm to identify new market opportunities and at least, in the short run, a firm can make a profit supplying products to this market segment.
• D)If a firm successfully manages its brand, customers become less price sensitive as they perceive fewer substitutes for the firm's brand.

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Definitions:

Preponderantly Conforming

A legal term used to describe goods that substantially meet the specifications or requirements outlined in a contract, despite minor discrepancies.

Uniform Commercial Code

A set of laws that provide legal rules and regulations governing commercial or business dealings and transactions.

Restatement of Contracts

The Restatement of Contracts is a comprehensive compilation of general principles regarding contract law, serving as a guide for judges and lawyers.

Judicial System

The system of courts that interprets and applies the law in the name of the state or country.