Question

A firm spends a great deal of money in advertising to inform consumers of the brand name of its mushrooms. Should consumers conclude that its mushrooms are likely to be of higher quality than unbranded​ mushrooms? Why or why​ not? A. No. The fact the firm has to advertise a great deal to promote its brand is an indication that the mushrooms are of a lower quality. B. Yes. Branding allows the mushrooms to be easily identified in the future. ​ Thus, if they were of inferior​ quality, the company would lose customers and go out of business over time. C. No. Branding is often used as a means of tricking consumers into thinking that a product is of superior quality when in reality it is not. D. Yes. If the mushrooms were not of high​ quality, the firm would not spend a great deal of money on advertising.

Answer 1

Answer: B. Yes. Branding allows the mushrooms to be easily identified in the future. ​ Thus, if they were of inferior​ quality, the company would lose customers and go out of business over time.

Explanation:

Branding is a way of making sure that your product is easily identifiable over other products.

When a company brands it's goods, they are trying to create Brand Awareness and this usually happens when a company plans to stay in a business for a while and indeed with the way the Firm is spending a lot of money on Advertising, one can surmise that they do indeed plan to stay in the business because they have spent a lot.

It would therefore make little to no sense on their part to spend such huge amounts of money to build their brand if their products will be of low quality. The mushrooms have to be of high quality so that people may associate their brand with High Quality.