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Critics Charge That High Advertising and Promotion Costs Unnecessarily Increase

Question 3

Multiple Choice

Critics charge that high advertising and promotion costs unnecessarily increase retail prices. Marketers most likely respond to this criticism by arguing that advertising _.


A) lowers prices by increasing competition
B) applies a functional value to the product
C) adds value by giving consumers product information
D) generates tax breaks for small businesses
E) provides essential psychological benefits about products

Correct Answer:

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