How Does Advertising Signal to Consumers That the Product Is

question 196

Multiple Choice

How does advertising signal to consumers that the product is a good one?

• A)By seeing famous people using the product, consumers infer that they too can be famous.
• B)By being willing to spend money on advertising, firms let consumers know the product is likely a good one since firms would not likely advertise a poor product.
• C)By making consumers laugh during commercials, firms are associating positive experiences with the product.
• D)Without allowing consumers to actually use the product, it is not possible for firms to signal to consumers the product's quality.

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Definitions:

Simple Random Sample

A subset of individuals chosen from a larger set such that every individual has an equal chance of being selected.

Sample Proportion

The fraction of observations in a sample that belong to a certain category, serving as an estimate of the proportion in the population.

Bias

A systematic error or deviation from the truth in results or inferences.

Normal Distribution

A bell-shaped curve distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.