The overall effect of advertising on economicefficiency ispositive, since it tends to lead to increased sales.indeterminate, since it leads to increased excesscapacity but may also guide consumers to betterdecisions.O negative, since it utilizes resources that couldotherwise be used to expand production.Advertising is not important for efficiency.

Advertising is a form of communication that is used to persuade people to buy products or services.…

Answered: The overall effect of advertising on…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Similar questions

Advertising can increase demand for the product, resulting in economies of scale in manufacturing, distribution, and sales. -True -False
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you have to choose between three advertising campaigns outlined by your agency. the first (a) is a soft-sell, honest, straight-information campaign. the second (b) uses sex-loaded emotional appeals and exaggerates the product’s benefits. the third (c) involves a noisy, somewhat irritating com- mercial that is sure to gain audience attention. Pretests show that the campaigns are effective in the following order: c, b, and a. What would you do?
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