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Which of the Following Statements Is Indicative of the "Advertising

Question 123

Multiple Choice

Which of the following statements is indicative of the "advertising equals market power" school of thought on advertising's role in the economy?


A) Advertising informs consumers about product attributes but does not change the way they value those attributes.
B) Advertising causes consumers to become more price sensitive and buy best "value."
C) Advertising affects consumer preferences and tastes, changes product attributes, and differentiates the product from competitive offerings.
D) Advertising makes entry possible for new brands because it can communicate product attributes to consumers.
E) Consumers can compare competitive offerings easily and competitive rivalry increases.

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