According to the signaling theory of advertising, consumers
A)pay little or no attention to which firms advertise and which firms do not advertise.
B)are often more impressed by a firm's willingness to spend money on advertising than they are by the content of the advertisement.
C)are often more impressed by low-cost advertisements than they are by high-cost advertisements.
D)gain little or no information about product quality from advertisements.

Question

Quizplus · Accepted Answer

According to signaling theory, consumers may perceive a firm's willingness to spend money on advertising as a signal of the firm's reliability and quality. In other words, consumers may view firms that invest more in advertising as more trustworthy and credible, regardless of the specific content of the advertisement.

According to the Signaling Theory of Advertising, Consumers