Question

Which best describes how advertising influences consumer choice in an oligopoly?

Answer 1

The answer is: D) advertising informs brand knowledge

Brand knowledge refers to how far costumers in the market aware of the existence of our product.

Advertising can be done by paying famous people to promote our product or by paying a spot in media that people consume daily (such as tv shows or magazines). In short, Advertising would definitely create exposure for our products and the brand knowledge that people have toward our product would increase along with it.

Answer 2

Which best describes how advertising influences consumer choice in an oligopoly? Answer: D Advertising informs brand knowledge

When you advertise a product, you are informing consumers of the brand and sharing the brand with them. If you fail to inform, you fail to build the brand. However, if you focus and inform your audience well, you are likely going to build a larger brand awareness. In an oligopoly there is limited competition due to a smaller amount of producers and sellers.