Which of the following statements regarding brand names in advertising is not correct?
A)Brand names provide consumers with information about quality when quality cannot be easily judged in advance of purchase.
B)Brand names give firms an incentive to maintain high quality to maintain the reputation of the firm.
C)Brand names allow firms to produce and sell inferior products in the long run since people will continue to purchase the brand-name product.
D)Brand names can cause consumers to perceive differences in products that do not actually exist.

Question

Quizplus · Accepted Answer

This statement is incorrect because brand names do not allow firms to produce and sell inferior products in the long run. In fact, the use of brand names gives firms an incentive to maintain high quality to maintain the reputation of the firm, as stated in choice B. The other statements are correct.

Which of the Following Statements Regarding Brand Names in Advertising