Question

A retailer displays a huge billboard of the products of a manufacturer to attract consumers. This is an example of the retailer's:

A)distributive function.
B)transactional function.
C)informational function.
D)logistical function.
E)facilitating function.

Answer 1

A retailer's display of products on a billboard is an example of the C) informational function, central to the commercial function of advertising and marketing.

Step-by-step explanation:

When a retailer displays a huge billboard of the products of a manufacturer to attract consumers, this is an example of the retailer's C) informational function.

Advertising serves a crucial role in the commercial function by distinguishing products of one firm from those of another.

This can result in a shift of the firm's perceived demand curve, either by making it more inelastic or by causing it to shift to the right.

An effective advertising campaign can thus enable a retail firm to sell more quantity or charge higher prices—increasing profits.

Storefront displays and billboards are classic examples of how marketers aim to manipulate shoppers' emotions and create a perception of added value beyond a product's explicit utility.