If consumers observe a lot of advertising for a product, they can infer that the producer:
A) expects the product to be successful.
B) thinks the product is of poor quality.
C) does not want his brand name associated with that product.
D) needs to rely on misinformation to get people to try the product.

Question

Quizplus · Accepted Answer

If a producer is investing a lot of money in advertising for a product, it is a strong indication that the producer expects the product to be successful and wants to create brand awareness and recognition. Advertising is an expensive investment, and a producer would not spend money on advertising a product they thought was of poor quality or did not want their brand associated with. Additionally, if a producer needs to rely on misinformation to sell a product, this would be considered unethical business practices.

If Consumers Observe a Lot of Advertising for a Product