How to convert folders into headings when I compile to DOC format?

Is there any way to convert folders into headings when I compile to DOC format?
In the example from the Scrivener tutorial, the headings refer to the titles of the documents, but they do not take into account the folders.

It is better to continue the existing discussion on this than having a new copy of the question, as others might not know what has already been covered.

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