Question

You see a commercial for a new product. It promises you clear skin in 30 days and greater confidence. The company selling the product is using a claim of higher quality than competing products in price-based competition a claim of higher quality than competing products in non-price competition an emotional appeal in advertising as a method of price-based competition an emotional appeal in advertising as a method of non-price competition

Answer 1

Firms compete using price and non-price competition. Non-price competition includes advertising. In this scenario, the commercial offers greater confidence with use of the product. This appeals to the emotions of the consumer.

Answer 2

I think you what to know which one they should do, the answer is the second one. In most health care commercials a company will claim higher quality in a non price competition. This is because it makes the product look cheap and ineffective as stigma points towards cheap sales as a ploy to sell a bad product or a ineffective one.