Final answer:
1. Informative advertising can include information about price, quality, and/or availability. (True)
2. When a company spends a lot on advertising, it is signaling that it expects that its product will be successful in the marketplace. (True)
3. Advertising as part of the product includes information about price, quality, and availability. (False)
4. Advertising as part of the product is used to persuade us to consume the good or service with little or no information about the product. (False)
Step-by-step explanation:
Informative advertising provides details about the product's price, quality, and availability. This type of advertising aims to provide potential customers with all the necessary information to make an informed decision about purchasing the product. When a company spends a lot on advertising, it indicates that they have confidence in their product's success in the marketplace. This could be due to factors such as high demand, strong brand recognition, or a unique selling proposition.
Advertising as part of the product refers to when the advertising itself becomes an integral part of the product itself. For example, some products come with a free sample or coupon inside the packaging. This type of advertising aims to provide additional value to the customer and encourage repeat purchases. It is not necessarily used to persuade customers to make a purchase without any prior information about the product.
In summary, while informative advertising and advertising as part of the product both provide information about the product, they serve different purposes. Informative advertising aims to provide potential customers with all the necessary details to make an informed decision about purchasing the product, while advertising as part of the product aims to provide additional value to customers and encourage repeat purchases.