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This question belongs to Management Product And Brand Management

Product and Brand Management

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Given below are two statements, one labelled as Assertion (A) an d the other labelled as Reason (R). Read the statements and choose the correct answer.
Assertion (A) The marketing costs of reaching loyal consumers are much lower because the firm does not have to spend money on advertising and promotion campaigns to attract these customers.
Reason (R) A high level of brand loyalty does not insulate the firm from competition.

A) Both (A) and (R) are correct and (R) is the correct explanation of (A) B) Both (A) and (R) are correct, but (R) is not the correct explanation of (A) C) (A) is correct, but (R) is incorrect D) Both (A) and (R) are incorrect

Answer & Solution

Correct Answer: Option C

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