The economics-of-information perspective says consumers are willing to pay for advertising because:
A) it is cheaper than paying for sales promotion.
B) it offers entertainment value.
C) the information provided reduces search time.
D) it reduces consumerism.

Question

Quizplus · Accepted Answer

Advertising can provide valuable information to consumers, reducing the time and effort they need to spend searching for products or services that meet their needs. This perspective suggests that the utility consumers gain from the information in advertising can be worth the cost, as it helps them make more informed purchasing decisions.

The Economics-Of-Information Perspective Says Consumers Are Willing to Pay for Advertising