| Line | According to economic signaling theory, |
| consumers may perceive the frequency with | |
| which an unfamiliar brand is advertised as a cue | |
| that the brand is of high quality. The notion that | |
| (5) | highly advertised brands are associated with |
| high-quality products does have some empirical | |
| support. Marquardt and McGann found that | |
| heavily advertised products did indeed rank high | |
| on certain measures of product quality. Because | |
| (10) | large advertising expenditures represent |
| a significant investment on the part of a | |
| manufacturer, only companies that expect to | |
| recoup these costs in the long run, through | |
| consumers repeat purchases of the product, | |
| (15) | can afford to spend such amounts. |
| However, two studies by Kirmani have found | |
| that although consumers initially perceive expensive | |
| advertising as a signal of high brand quality, | |
| at some level of spending the manufacturers | |
| (20) | advertising effort may be perceived as unreasonably |
| high, implying low manufacturer confidence in | |
| product quality. If consumers perceive excessive | |
| advertising effort as a sign of a manufacturers | |
| desperation, the result may be less favorable | |
| (25) | brand perceptions. In addition, a third study by |
| Kirmani, of print advertisements, found that the | |
| use of color affected consumer perception of | |
| brand quality. Because consumers recognize that | |
| color advertisements are more expensive than | |
| (30) | black and white, the point at which repetition of an |
| advertisement is perceived as excessive comes | |
| sooner for a color advertisement than for a blackand- | |
| white advertisement. |
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