A recent outbreak of hepatitis was linked to a national fast-food restaurant chain. This is an example of a case in which
A)brand name identity increases the effectiveness of markets.
B)brand name identity can be detrimental to the profitability of a firm.
C)advertising is ineffective in salvaging perceptions of product quality.
D)advertising cannot be used to establish brand loyalty.

Question

Quizplus · Accepted Answer

The hepatitis outbreak linked to the fast-food restaurant chain highlights how brand name identity can be detrimental to the profitability of a firm. The negative association with the brand due to the outbreak can lead to decreased sales and ultimately harm the company's profitability.

A Recent Outbreak of Hepatitis Was Linked to a National