According to the Signaling Theory of Advertising, Consumers

question 374

Multiple Choice

According to the signaling theory of advertising, consumers

• A)pay little or no attention to which firms advertise and which firms do not advertise.
• B)are often more impressed by a firm's willingness to spend money on advertising than they are by the content of the advertisement.
• C)are often more impressed by low-cost advertisements than they are by high-cost advertisements.
• D)gain little or no information about product quality from advertisements.

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Definitions:

Business Executives

Individuals who hold senior positions within a company, responsible for strategic decision-making and overall organizational leadership.

Harvard Business Review

A management magazine that is a product of Harvard Business Publishing that provides insights and research on management practices and trends.

Perceptual Distortion

An error in how we interpret or understand sensory information, causing us to misjudge part of our environment or social interactions.

Primacy Effect

A cognitive bias that results in a person recalling information presented at the beginning of a list better than information in the middle or end.