Question 1

Those economists who believe advertising equals information view advertising as:

Accepted Answer

Economists who see advertising as information believe it provides useful information, facilitates market entry, improves product quality, and has positive economic effects.

Question 2

Marketers who believe that advertising equals _____ sees advertising as providing consumers with useful information,increasing their price sensitivity and increasing competition in the market.

Accepted Answer

Marketers who believe that advertising equals information view advertising as a means of providing consumers with useful information about a product or service. This information can increase consumers' price sensitivity and increase competition in the market but it does not necessarily imply any of the other options.

Question 3

The belief that advertising equals _____ reflects traditional economic thinking that views advertising as a way to change consumers' tastes,lower their sensitivity to price,and build brand loyalty among buyers of the advertised brand.

Accepted Answer

Traditional economic thinking suggests that advertising creates market power by influencing consumer preferences, reducing price sensitivity, and fostering brand loyalty, which can give a company a competitive edge in the market.

Question 4

Those economists who believe that advertising equals market power view advertising as:

Accepted Answer

Economists who believe that advertising equals market power argue that advertising has all of the above effects, including changing consumers' tastes and creating brand loyalty, reducing competition, resulting in higher prices, and acting as a barrier to entry for new firms.

Question 5

If a marketer believes that only the relationship between price and quality affects elasticity for a given product,then he or she must believe that advertising equals:

Accepted Answer

The answer of If a marketer believes that only the...

Question 6

From an economic perspective,advertising might lower the cost of a product by:

Accepted Answer

Advertising can increase the sales volume of a product, which leads to economies of scale. As the volume of production increases, companies can spread their fixed costs over a larger number of units, resulting in a lower cost per unit. This cost reduction can be passed on to the consumers, resulting in a lower price for the product.

Question 7

If a marketer for an established company believes potential entrants to the marketplace must overcome established brand loyalty and spend relatively more on advertising,then he or she must believe that advertising equals:

Accepted Answer

The answer of If a marketer for an established company...

Question 8

Why have the AAAA and AAF created and implemented an integrated marketing communications campaign?

Accepted Answer

The AAAA (American Association of Advertising Agencies) and AAF (American Advertising Federation) have created and implemented an integrated marketing communications campaign to prove the economic and social importance of advertising. This is likely to promote a positive image of the advertising industry and its impact on the economy and society.

Quiz 22: Evaluating the Social,Ethical,and Economic Aspects of Advertising and Promotion