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CBSE Class 12-commerce Answered

"Advertising is social based".Do you agree?Comment
Asked by Shruti | 20 Oct, 2017, 12:13: PM
answered-by-expert Expert Answer
I think you are asking about advertising as a social waste.
 
There are different views with regard to expenditure on advertising. While on one hand, it is considered a social waste as it adds to the cost of production, weakens social values and adds to consumer needs and desires. However, on the other hand, it is beneficial as it helps in enhancing the sales of the product of the firm. The following points help in judging whether advertising is a waste or is beneficial to the firm: 
 
1. Higher Cost: Expenses on advertisement add to the cost product, the firm, then in turn, pass on this additional cost to the consumers in the form of higher prices. However, advertising helps in attracting the consumers to the product. Accordingly, the demand for the product increases. To cater to the increased demand, the production increases. An increase in the production, in turn, lowers the per unit cost of production.  
 
2. Weakens Social Values: One of the major arguments against advertising is that it weakens social values in the sense that it promotes materialism in the society. Advertisement attracts customers and induces them to purchase the product. They are more aware with regard to the availability of different and new products in the market. In the process they are often dissatisfied with their current possession of goods. Often on being increasingly attracted by the new product they purchase even those products that they may not even require. This increases materialism in the society. On the other hand, it is said that advertisement is beneficial to the consumers in the sense that it informs them about the various products that are available in the market. The final decision regarding the purchase of the product lies with the consumer himself. 
Answered by Vanita Rana | 20 Oct, 2017, 02:19: PM
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