Chapter 3.2, Problem 1R

Solution

To Explain : Significance of given terms.

Competitive Advertising: Competitive advertising is an advertising that try to convince the customers or consumers that their product is different and much better than the other competitors in the market. Companies use this advertising to gather more customers from their competitor or to keep the customers they already have.

Informative Advertising: Informative advertising is an advertising that satisfy the customers or consumers by providing them information about a product. This type of advertising may have information about the price, quality and characteristics of the product. This advertising can also be competitive in nature.

Bait and Switch: Bait is an advertising technique in which they advertise goods at a lowest price. If the customer gets attracted to the product, they went to buy that from the shop, the salesperson then points out all the negative features regarding that product and then shows them the higher price product by telling all the good features of that - the switch.

Comparison shopping: The process in which customer gathers information regarding the product from different sources and compares the prices from different stores or companies is called comparison shopping. Comparison shopping can be effectively done by reading newspaper, browsing web, talking to friends. Comparison shopping is time consuming as time spend to gather information and then deciding the best place for buying the product.

Warranty: Warranty is defined as the promise which the seller makes to the customer to replace or repair the product purchased by the customer if the product out to be faulty within a certain time period.

Brand name: Brand name is a logo, picture or word put on a product which helps the customer to differentiate it from similar products. Every company has its own brand name. No two companies will have a same brand name. Genetic Brand: Genetic brand are those brands in which there is no specific brand name. It has a general name which leads to the difficulty in knowing that the product is made by which company.