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cereal is only mediocre. By its willingness to spend money on advertising,where to buy chi flat irons, Kellogg
signals to consumers the quality of its cereal. Each consumer thinks,zumba dvd cheap, quite sensibly,
"Boy,P90x Recovery Drink, if the Kellogg Company is willing to spend so much money advertising this
new cereal, it must be really good."
What is most surprising about this theory of advertising is that the content of
the advertisement is irrelevant. Kellogg signals the quality of its product by its
willingness to spend money on advertising. What the advertisements say is not as
388 PA R T F I V E F I R M B E H AV I O R A N D T H E O R G A N I Z AT I O N O F I N D U S T R Y
important as the fact that consumers know ads are expensive. By contrast,chanel reading glasses, cheap
advertising cannot be effective at signaling quality to consumers. In our example,
if an advertising campaign cost less than $3 million,P90x Schedule, both Post and Kellogg would

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