Topaz is a brand of wrist watches manufactured by Krypton Inc. Krypton spends little money on its advertising, yet Topaz is a highly successful brand owing to its attractive features, exquisite design, and performance. The success of Topaz can be interpreted as evidence that

Multiple Choice

advertising is not needed for a brand to be successful.

advertising is a major barrier to entry.

advertising can minimize competition based on product improvement.

product quality is an important determinant of a brand$$s success.

advertising increases product costs and prices.