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According to economic signaling theory, consumers may perceive
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07 Feb 2022, 02:49
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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 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 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, 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 manufacturer's 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 manufacturer's desperation, the result may be less favorable 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 black and white, the point at which repetition of an advertisement is perceived as excessive comes sooner for a color advertisement than for a black-and-white advertisement.
Question 1
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Question Stats:
86% (01:55) correct
14% (03:10) wrong based on 36 sessions
1) Which of the following best describes the purpose of the highlight sentence?
(A) To Show that economic signaling theory fails to explain a finding (B) To introduce a distinction not accounted for by economic signaling theory (C) To account for an exception to a generalization suggested by Marquardt and McGann (D) To explain why Marquardt and McGann's research was conducted (E) To offer an explanation for an observation reported by Marquardt and McGann
Question 2
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45% (01:26) correct
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(A) present findings that contradict one explanation for the effects of a particular advertising practice (B) argue that theoretical explanations about the effects of a particular advertising practice are of limited value without empirical evidence (C) discuss how and why particular advertising practices may affect consumers' perceptions (D) contrast the research methods used in two different studies of a particular advertising practice (E) explain why a finding about consumer responses to a particular advertising practice was unexpected
Question 3
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81% (00:56) correct
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3) Kirmani's research, as described in the passage, suggests which of the following regarding consumers' expectations about the quality of advertised products?
(A) Those expectations are likely to be highest if a manufacturer runs both black-and-white and color advertisements for the same product. (B) Those expectations can be shaped by the presence of color in an advertisement as well as by the frequency with which an advertisement appears. (C) Those expectations are usually high for frequently advertised new brands but not for frequently advertised familiar brands. (D) Those expectations are likely to be higher for products whose black-and-white advertisements are often repeated than for those whose color advertisements are less often repeated. (E) Those expectations are less definitively shaped by the manufacturer's advertisements than by information that consumers gather from other sources.
Question 4
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4) Kirmani's third study, as described in the passage, suggests which of the following conclusions about a black-and-white advertisement?
(A) It can be repeated more frequently than a comparable color advertisement could before consumers begin to suspect low manufacturer confidence in the quality of the advertised product. (B) It will have the greatest impact on consumers' perceptions of the quality of the advertised product if it appears during periods when a color version of the same advertisement is also being used. (C) It will attract more attention from readers of the print publication in which it appears if it is used only a few times. (D) It may be perceived by some consumers as more expensive than a comparable color advertisement. (E) It is likely to be perceived by consumers as a sign of higher manufacturer confidence in the quality of the advertised product than a comparable color advertisement would be.
Question 5
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56% (01:37) correct
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5) The passage suggests that Kirmani would be most likely to agree with which of the following statements about consumers' perceptions of the relationship between the frequency with which a product is advertised and the product's quality?
(A) Consumers' perceptions about the frequency with which an advertisement appears are their primary consideration when evaluating an advertisement's claims about product quality. (B) Because most consumers do not notice the frequency of advertisement, it has little impact on most consumers' expectations regarding product quality. (C) Consumers perceive frequency of advertisement as a signal about product quality only when the advertisement is for a product that is newly on the market. (D) The frequency of advertisement is not always perceived by consumers to indicate that manufacturers are highly confident about their products' quality. (E) Consumers who try a new product that has been frequently advertised are likely to perceive the advertisement's frequency as having been an accurate indicator of the product's quality.
Re: According to economic signaling theory, consumers may perceive
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23 Feb 2022, 00:56
Expert Reply
Official Explanation
1) Which of the following best describes the purpose of the highlight sentence?
Difficulty Level: Easy
Explanation
Logical structure
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. 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.
Re: According to economic signaling theory, consumers may perceive
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23 Feb 2022, 00:59
Expert Reply
Official Explanation
2) The primary purpose of the passage is to
Difficulty Level: Hard
Explanation
Main idea
The primary purpose can be determined only by evaluating the whole passage. The first paragraph discusses consumers’ perceptions of quality based on frequency of advertising. The second paragraph discusses three studies that show how consumers base their evaluations of products on the kinds of advertising they see. Therefore, the purpose of the whole passage is to show how consumers’ perceptions of products are shaped by certain advertising practices.
A. The passage shows that expensive advertising works to a certain point, but not after it; this method examines a continuum, not a contradiction.
B. Most of the passage is devoted to empirical evidence.
C. Correct. The passage shows how the frequency and the kind of advertising influence consumers’ perceptions about the quality of the products advertised.
D. The passage reports the findings of four studies but does not mention research methods.
E. The passage does not indicate that any of the findings were unexpected.
Re: According to economic signaling theory, consumers may perceive
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23 Feb 2022, 01:03
Expert Reply
Official Explanation
3) Kirmani's research, as described in the passage, suggests which of the following regarding consumers' expectations about the quality of advertised products?
Difficulty Level: Easy
Explanation
Inference
The question’s use of the word suggests means that the answer depends on making an inference. This research is discussed in the second paragraph. Kirmani found that too much advertising tended to make the consumers believe that manufacturers were desperate. The use of color was also found to affect consumers’ perceptions of brand quality. Realizing that color advertising is more expensive than black-and-white, consumers react more quickly to what they perceive to be its overuse than they do to a repetition of black-and-white advertisements.
A. This situation is not discussed in the research, at least as it is reported in this passage.
B. Correct. It can be inferred that consumers’ perceptions of product quality are influenced by the use of color in an advertisement and by the frequency of the advertisement’s appearance.
C. The research does not make a distinction between new and familiar brands.
D. The research indicates only that consumers can tolerate black-and-white advertisements for a longer time than color advertisements before dismissing them as excessive.
E. There is no discussion of what consumers learn from other sources.
Re: According to economic signaling theory, consumers may perceive
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23 Feb 2022, 01:06
Expert Reply
Official Explanation
4) Kirmani's third study, as described in the passage, suggests which of the following conclusions about a black-and-white advertisement?
Difficulty Level: Easy
Explanation
Inference
Kirmani’s third study is discussed in the final two sentences. Consumers suspect expensive advertising results from a manufacturer’s lack of confidence in the quality of the product. Consumers reach the point at which they find advertising excessive more quickly with color advertising than with black-and-white advertising because they understand that the addition of color increases advertising expenses. It is reasonable to infer that the reverse is also true and thus that consumers will tolerate lengthier repetitions of black-and-white advertising without becoming suspicious of product quality.
A. Correct. Consumers find color advertising excessive more quickly and thus can be expected to find black-and-white advertising excessive less quickly.
B. The study does not discuss concurrent appearances of color and black-andwhite advertisements for the same product.
C. The sole conclusion about frequency is that consumers can tolerate a greater frequency of black-and-white advertisements than color advertisements.
D. It is stated that consumers understand that color advertisements are more expensive.
E. The research certainly does not report this finding.
Re: According to economic signaling theory, consumers may perceive
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23 Feb 2022, 01:10
Expert Reply
Official Explanation
5) The passage suggests that Kirmani would be most likely to agree with which of the following statements about consumers' perceptions of the relationship between the frequency with which a product is advertised and the product's quality?
Difficulty Level: Medium to Hard
Explanation
Inference
The first sentence of the second paragraph provides the answer to this question: at some level of spending the manufacturer’s advertising effort may be perceived as unreasonably high, implying low manufacturer confidence in product quality. Thus, it is logical to assume that if a product is advertised too frequently, consumers may believe that the manufacturer is spending excessive amounts on advertising because that manufacturer is not confident of the product’s quality.
A. Kirmani’s research, as reported here, does not support this claim.
B. Kirmani’s research examines how consumers respond to the frequency of advertising; the research does not indicate that consumers do not notice frequency.
C. The research does not distinguish between new and familiar products.
D. Correct. Excessive advertising may lead consumers to believe that the manufacturer lacks confidence in the quality of the product.
E. Kirmani’s research does not specifically address new products.
Re: According to economic signaling theory, consumers may perceive
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22 Nov 2024, 05:00
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