A company that spends a lot of money on advertising is sending a credible signal because this act:
A) conveys the company's confidence in the quality of its product.
B) persuades the consumer to perceive a product as high quality, even if it is not.
C) conveys the company's confidence in its ability to convince the consumer to buy.
D) None of these explains why advertising can be a credible signal.
Correct Answer:
Verified
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