One of your classmates asserts that advertising, marketing research, and brand management are redundant expenditures because a firm can obtain the same information by simply looking at what customers are already buying.Which of the following is not a response you might offer her?
A)Conducting market research is a good way for firms to keep abreast of changing consumer tastes and preferences.
B)Advertising and brand management allow a firm to create an entry barrier which will insulate the firm from competition and from undertaking further product innovations.
C)Marketing research could allow a firm to identify new market opportunities and at least, in the short run, a firm can make a profit supplying products to this market segment.
D)If a firm successfully manages its brand, customers become less price sensitive as they perceive fewer substitutes for the firm's brand.

Question

Quizplus · Accepted Answer

This response actually supports the assertion that advertising, marketing research, and brand management are redundant expenditures. Insulating the firm from competition and further product innovations could imply that the firm is not keeping up with changing consumer preferences and therefore may not need to invest in these expenditures.

One of Your Classmates Asserts That Advertising, Marketing Research, and Brand