Which of the following statements about how a firm builds trust and image is incorrect?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Under building credibility, people believe in a product because it comes in the media as a sponsored message.
Option (1) Advertising creates confidence among prospective buyers, as they feel assured about the product quality. — Correct statement. This is the merit of advertising called enhancing customer satisfaction and confidence. Buyers feel assured about the product quality, so they feel more satisfied.
Option (2) Interviews with TV channels and responding to queries from the media help in promoting public relations. — Correct statement. These are part of corporate communication. Along with speeches by executives, they go a long way in promoting public relations.
Option (3) Under building credibility, people believe in a product because it comes in the media as a sponsored message. — Incorrect statement. Under building credibility, people believe in a product because it comes in the news. A message from an independent source, like the press, carries more credibility than a sponsored message in advertising.
Option (4) A company can build goodwill by contributing money and time to causes like wildlife and education. — Correct statement. Under counselling, a company builds goodwill by giving money and time to causes like environment, wildlife, children's rights and education.
NCERT (2026-27 Edition): “Public Relations … 1. Publicity: … In publicity, as the information is disseminated by an independent source, e.g., the press in the form of news stories and features, the message has more credibility than if that comes as a sponsored message in advertising.” “Public Relations … In addition, maintaining good public relations also helps in achieving the following marketing objectives: |