Which of the following statements is true of using marketing to shape perceptions and expectations?
A) Preannouncements reduce excitement about a product before its release.
B) A firm that aggressively promotes its products loses its actual installed base and its perceived installed base.
C) A firm should avoid using vaporware if other vendors beat the firm to market and the firm fears that customers may select a dominant design.
D) A firm can signal its commitment to an industry by making substantial investments that would be difficult to reverse.

Question

Quizplus · Accepted Answer

Making substantial investments that would be difficult to reverse signals a firm's commitment to the industry and can help shape perceptions and expectations about the firm's future in the industry. Preannouncements can actually increase excitement about a product, not reduce it. Aggressively promoting products can help increase a firm's perceived installed base, not decrease it. Vaporware can be used strategically, even if other vendors beat the firm to market, to help shape perceptions about a firm's innovation capabilities.

Which of the Following Statements Is True of Using Marketing