The relationship between advertising and product differentiation is
A)positive; the more differentiated the product, the more a firm is likely to spend on advertising.
B)negative; the more differentiated the product, the less a firm is likely to spend on advertising.
C)zero; there is no relationship between product differentiation and advertising.
D)irrelevant; firms with differentiated products do not need to advertise.

Question

Quizplus · Accepted Answer

The relationship is positive because firms with more differentiated products often spend more on advertising to highlight the unique features and benefits of their products compared to competitors. This helps in creating a distinct brand image and attracting customers.

The Relationship Between Advertising and Product Differentiation Is