Although advertising raises the price of a monopolistic competitor \u02b9 s product

Although advertising raises the price of a

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123) Although advertising raises the price of a monopolistic competitorʹs product, it does confer abenefit to consumers. Which of the following is a benefit to consumers? A) Advertised products tend to be of higher quality so consumers feel special when theyconsume advertised products.B) Advertising could provide consumers with useful information about new products andenable them to comparison shop.C) Advertising engenders brand loyalty.D) Advertising acts as a barrier to entry.Answer: B123)Diff: 2Page Ref: 446/446Topic: AdvertisingLearning Outcome: Micro 15: Discuss the role of differentiation in monopolistic competition in comparison toother market conditionsAACSB: Reflective Thinking 124) One of your classmates asserts that advertising, marketing research, and brand management areredundant expenditures because a firm can obtain the same information by simply looking at whatcustomers are already buying. Which of the following isnota response you might offer her? 124)Diff: 2Page Ref: 446/446Topic: AdvertisingLearning Outcome: Micro 15: Discuss the role of differentiation in monopolistic competition in comparison toother market conditionsAACSB: Analytic SkillsTRUE/FALSE. WriteʹTʹif the statement is true andʹFʹif the statement is false.125) A successful trademark is one that becomes a generic name for a product, for example,ʺKleenexʺhas become a generic term for tissues.125)Answer:TrueFalseDiff: 2Page Ref: 446/446Topic: Brand ManagementLearning Outcome: Micro 15: Discuss the role of differentiation in monopolistic competition in comparison toother market conditionsAACSB: Reflective Thinking126) In the highly competitive fast-food restaurant market, brand name restaurants have a strong profitincentive to maintain high sanitary conditions and avoid any negative consequences.126)Answer:TrueFalseDiff: 2Page Ref: 446/446Topic: Brand ManagementLearning Outcome: Micro 15: Discuss the role of differentiation in monopolistic competition in comparison toother market conditionsAACSB: Reflective Thinking 42
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