Which of the following statements about comparative advertising is true?
A) Comparative advertising for a new brand has a negative impact on purchase intentions if a brand with high credibility is the comparison product.
B) The FCC is the only federal agency that has any regulatory power over comparative advertising.
C) Direct comparative advertisements will not decrease purchase intentions for established brands even though consumer awareness of new ones is increased.
D) Comparative advertising is highly regulated and is illegal in certain countries.
E) None of these statements about comparative advertising is true.

Question

Quizplus · Accepted Answer

Comparative advertising is highly regulated and is illegal in certain countries. While the FCC has some regulatory power over comparative advertising in the United States, other countries have stricter regulations or prohibit it altogether. Additionally, studies have shown that direct comparative advertisements can decrease purchase intentions for established brands, especially if the comparison product has higher credibility. Therefore, statement A is false. Statement B is also false, as other federal agencies such as the FTC also have regulatory power over comparative advertising. Statement C is partially false because direct comparative advertisements can decrease purchase intentions for established brands, but they can also increase consumer awareness of new ones.

Which of the Following Statements About Comparative Advertising Is True