Question

Assertion (A): Advertisement is an important means for facing competition.

Reason (R): By creating brand loyalty, advertising helps to maintain sales and market share.

Options

• Both (A) and (R) are correct, and (R) is the right explanation of (А).

• Both (A) and (R) are correct, but (R) is not the right explanation of (A).

• (A) is correct, but (R) is incorrect.

• Both (A) and (R) are incorrect.

Answer 1

Both (A) and (R) are correct, and (R) is the right explanation of (А).

Explanation:

Both A and R are correct, and R explains A, because Advertising creates brand loyalty, which sustains sales and market share; that loyal customer base helps firms withstand competitors, maintain preference, and preserve their market position.