Firms that spend a large amount of money on advertising a particular product are likely to be providing consumers with

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Firms that spend a large amount of money on advertising a particular product are likely to be providing consumers with a signal of product quality. This is because firms generally invest heavily in advertising when they want to persuade consumers that their product is of high quality and worth buying. The advertising provides cues about the product, such as its features, benefits, and unique selling points, which can influence consumers' perceptions of its quality.

Firms That Spend a Large Amount of Money on Advertising