CBSE Class 12-commerce Answered
Is advertising a social waste? Give 4 reasons
Asked by Raghav | 17 Nov, 2018, 12:38: PM
Expert Answer
There are different views with regard to expenditure on advertising. 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. 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:
The following points help in judging whether advertising is a waste or is beneficial to the firm:
- Higher Cost: Expenses on advertisement add to the cost of the product, the firm, and then in turn, is passed on as additional cost to consumers in the form of higher prices. However, advertising helps in attracting consumers to the product. Accordingly, thedemand 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.
- Weakens Social Values: One of the major arguments against advertising is that it weakens social values in the sense that it promotes materialism in 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 require. This increases materialism in society. On the other hand, it is said that advertisement is beneficial to consumers in the sense that it informs them about the various products which are available in the market. The final decision regarding the purchase of the product lies with the consumer himself.
- Creates Confusion: It is argued that with advertisements of a large number of similar products, the consumer often gets confused. On the contrary, those who support advertisements argue that they help in increasing the knowledge of the consumer with regard to the availability of different products in the market. In this way, it increases their choice and helps them in making an informed decision with regard to purchase of the product.
- Promotes Inferior Goods: Advertisement induces consumers to purchase the product. Even inferior goods can be advertised, and their demand be induced. However, it said that quality is only a relative product. Advertisements provide knowledge with regard to all kinds of products. Whether to purchase the product or not is up to consumers themselves.
Answered by Tharageswari S | 19 Nov, 2018, 08:48: AM
Concept Videos
-
Nature and Significance of Management
Nature and Significance of Management, Coordination - The Essence of Manage... -
Nature and Significance of Management
Nature and Significance of Management, Coordination - The Essence of Manage... -
Principles of Management
Principles of Management, Fayol v/s Taylor and Intertemporal Comparisons -
Business Environment
Business Environment, Economic Environment in India -
Business Environment
Business Environment, Economic Environment in India
CBSE 12-commerce - Business Studies
Asked by senthilramanathankanishka | 16 May, 2022, 09:39: PM
ANSWERED BY EXPERTCBSE 12-commerce - Business Studies
Asked by nsharmayoo | 02 Oct, 2021, 11:20: AM
ANSWERED BY EXPERTCBSE 12-commerce - Business Studies
Asked by nousadsalmani169 | 27 Sep, 2020, 02:24: PM
ANSWERED BY EXPERTCBSE 12-commerce - Business Studies
Asked by sahulgupta8 | 23 Jun, 2020, 04:09: PM
ANSWERED BY EXPERTCBSE 12-commerce - Business Studies
Asked by rsnitish7051singh | 20 May, 2020, 01:07: PM
ANSWERED BY EXPERTCBSE 12-commerce - Business Studies
Asked by singhsukh3355 | 18 May, 2020, 10:09: AM
ANSWERED BY EXPERTCBSE 12-commerce - Business Studies
Asked by Prashant DIGHE | 18 Apr, 2020, 10:24: PM
ANSWERED BY EXPERTCBSE 12-commerce - Business Studies
Asked by vcgeetha22 | 21 Mar, 2020, 01:54: PM
ANSWERED BY EXPERT
