A. Advertising manipulates people’s tastes to create a desire that otherwise would not exist
B. Advertising increase competition Which causes unnecessary bankruptcies and layoffs.
C. Advertising increases brand loyalty causes demand to be more inelastic and thus, increase mark-up over marginal cost.
All of these answers are criticisms of advertising and brand names
Related Mcqs:
- Defenders of the use of brand names argue that brand names ?
A. all of these answers
B. are useful even in socialist economics such as the former Soviet Union
C. provide information about the quality of the product
give firms incentive to maintain high quality - Which of the following is not an argument put forth by economists in support of the use of advertising ?
A. Advertising increases competition
B. Advertising provides information to customers about prices, new products and location of retail outlets.
C. Advertising provides a creative outlet for artists and writers
D. Advertising provides new firms with the means to attract customers from existing firms. - When a company enters a new product category for which its current brand names are not appropriate it will likely follow which of the following brand strategies ?
A. Product extensions
B. Line extensions
C. Brand extensions
D. New brands - When one firm in the breakfast cereal market started an advertising campaign that stressed the nutritional value of its cereals, all other cereal manufacturers started similar advertising campaign This suggests that the breakfast cereal market is ?
A. monopolistically competitive
B. oligopolistic
C. perfectly competitive
D. indeterminate from this information - Which of the following firms is most likely to spend a large percentage of their revenue on advertising ?
A. the producer of a highly differentiated consumer product
B. the manufacturer of an undifferentiated consumer commodity
C. a perfect competitor
D. The manufacturer of an industrial product
E. The producer of a low-quality product that costs the same to produce as a similar high-quality product - Using a successful brand name to introduce additional items in a given product category under the same brand same (such as new flavors, forms, colors, added ingredients or package seizes) is called a(n)?
A. line extension
B. brand extension
C. multibranding
D. new brands - In terms of execution style a family seated at the dinner table enjoying the advertised product would be an example of which of the following types of advertising ?
A. Slice of life
B. Lifestyle
C. Mood or imagery
D. Personality symbol - Today advertising captures about ________ percent of total promotion spending?
A. 15
B. 23
C. 29
D. 33 - Marketers are sometimes accused of deceptive practices that lead consumers to believe they will get more value than they actually do. _____ includes practices such as falsely advertising factory of wholesale prices or a large price reduction from a phony high retail price ?
A. Deceptive promotion
B. Deceptive packaging
C. Deceptive pricing
D. Deceptive cost structure - In evaluating messages for advertising telling how the product is better than the competing brands aims at making the ad ?
A. meaningful
B. distinctive
C. believable
D. remembered
