A new product is advertised on the "infomercials" as being "the best cleaner money can buy" and "if not completely satisfied, return the product for a full refund, including shipping." The strategy of using a strong guarantee in this instance is sound because ________.
A) it is an example of a misleading or false advertising and is illegal
B) the product is so superior to competition that there will be no claims for refunds
C) it is just "advertising fluff" and the manufacturer has no intentions of refunding money
D) for a product that is not too well known, it is "good advertising" because the claims will be a small percentage of sales
E) for a product that is not too well known it reduces the buyer's risk in purchasing

Question

Quizplus · Accepted Answer

The use of a strong guarantee is a good strategy for a product that is not well known because it reduces the buyer's risk and increases their confidence in making a purchase. This can ultimately lead to more sales and greater customer satisfaction. It is not a form of false advertising as long as the guarantee is genuine and the manufacturer follows through on their promise of a full refund.

A New Product Is Advertised on the "Infomercials" as Being