Which of the Following Statements Regarding Brand Names in Advertising

question 297

Multiple Choice

Which of the following statements regarding brand names in advertising is not correct?

• A)Brand names provide consumers with information about quality when quality cannot be easily judged in advance of purchase.
• B)Brand names give firms an incentive to maintain high quality to maintain the reputation of the firm.
• C)Brand names allow firms to produce and sell inferior products in the long run since people will continue to purchase the brand-name product.
• D)Brand names can cause consumers to perceive differences in products that do not actually exist.

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