Check Your Understanding

  1. Question

    For each of the following types of advertising, explain whether it is likely to be useful or wasteful from the standpoint of consumers.

    1. advertisements explaining the benefits of aspirin

    2. advertisements for Bayer aspirin

    3. advertisements that state how long a plumber or an electrician has been in business

  2. Question

    Some industry analysts have stated that a successful brand name is like a barrier to entry. Explain why this might be true.