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) 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.
B) If a firm successfully manages its brand, customers become less price sensitive as they perceive fewer substitutes for the firm's brand.
C) Conducting market research is a good way for firms to keep abreast of changing consumer tastes and preferences.
D) 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.

Question

Quizplus · Accepted Answer

A) Advertising and brand management do not inherently prevent a firm from undertaking further product innovations. Instead, they are tools to differentiate a product and build customer loyalty, not mechanisms to avoid innovation or competition.

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