Final answer:
Advertising aims to catch customer attention during the Product Existence stage, where it builds awareness and differentiates the product. Effective advertising impacts the perceived demand curve, making it more inelastic or shifting it right, ultimately leading to increased demand and sales. Option A.
Step-by-step explanation:
The stage at which advertising catches the attention of customers by building awareness of the product is known as the Product Existence stage.
At this point, the goal is to inform potential customers that the product exists and highlight its unique features to differentiate it from competing products.
This aligns with the concept of the perceived demand curve in the framework of monopolistic competition, where advertising is designed to either make the firm's perceived demand curve become more inelastic or to shift it to the right, indicating an increase in demand for the firm's products.
Companies aim to reach potential customers through various platforms and mediums, such as billboards, commercials, and digital ads, to establish recognition and increase sales.
Hence, the right answer is option A.