Persuasive advertising becomes more important as competition increases and the firm attempts to build selective demand.

Question

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As competition increase, it becomes more difficult for a firm to differentiate their product from others in the market. Therefore, persuasive advertising is needed to convince customers to choose their product over competitors. Selective demand refers to the demand for a specific brand rather than just the general product category. By using persuasive advertising, the firm can build a strong brand image and increase selective demand for their product.

Persuasive Advertising Becomes More Important as Competition Increases and the Firm