Which of the following best describes the purpose of the sentence in lines 1015?

To show that economic signaling theory fails to explain a finding.
To introduce a distinction not accounted for by economic signaling theory.
To account for an exception to a generalization suggested by Marquardt and McGann.
To explain why Marquardt and McGann's research was conducted.
To offer an explanation for an observation reported by Marquardt and McGann.
Verified by Toppr

Marquardt and McGann found a correlation between highly advertised products and high quality products. The connection can be explained by understanding that companies may invest heavily in such advertising, anticipating that recurring purchases of high-quality products will eventually recover these advertising costs. The consumers will continue to buy these products over time because of loyalty to their high quality. The statement in bold provides this explanation for the correlation noted by Marquardt and McGann.
A. The sentence does not explain a failure of the economic signaling theory.
B. Economic signaling theory is about perceptions of quality, but this explanation is about actual quality and its correlation with advertising.
C. No exception is mentioned in Marquardt and McGann's work.
D. The sentence does not examine why or how the research was undertaken.
E. Correct. This statement provides an explanation of why highly advertised products did indeed rank high on certain measures of product quality.
The correct answer is E.

Was this answer helpful?
Similar Questions

Due to economic reasons, only the upper sideband of an AM wave is transmitted, but at the receiving station, there is a facility for generating the carrier. Show that if a device is available which can multiply two signals, then it is possible to recover the modulating signal at the receiver station.

View Solution

An accountant is sent to learn the new software for accounting to prepare the books of accounts faster and accurately. He was further sent to orientation to improve his motivational and conceptual skills. The concept that explains the above.

View Solution

Why does an economic problem arise? Explain.


Why is a production possibility curve concave to the origin? Explain.

View Solution

Read the following sentences and choose the option that best describes these sentences.
1. A municipal corporation is headed by a president.
2. A municipal council is headed by an accountant.

View Solution

The ‘Economic Drain Theory’ put forward by early nationalist helped to explain the British exploitation of India. What was ‘economic Drain Theory? How did it impact India?

View Solution