CBSE Class 12 Business Studies 2014 Outside Delhi Set 1 Paper

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Question : 37
Total: 37
"Though advertising is one of the most frequently used media of promotion of goods and services, yet it attracts lot of objections." Explain any four such objections.
Solution:  
Though advertising is one of the most frequently used mode for the promotion of goods and services, it caters to a lot of other objections as well.
Some of the objections of advertising are given below:
(i) Higher cost: Advertisement expenses add to the cost of the company but cost per unit is low. The companies in turn, pass this increased cost to the consumers in the form of higher prices.
(ii) Weakens social values: One of the major criticisms to advertising is that it weakens social values and instead promotes materialism in the society. Advertisement attracts customers towards new products and induces them to purchase it. With increased knowledge about the availability of new products, the customers feel dissatisfied about what they currently have. In the process, often they end up buying what they don't even require. However, such a process of discontentment and purchase of new products is never ending and materialism increases.
(iii) Creates confusion: It is argued that a large number of advertisements on similar products confuse the customers. For example, advertisements of different hair oils claim that they help in the growth of healthy and long hair. With numerous advertisements, the consumer gets confused as to the product of which brand should be purchased.
(iv) Promotes inferior goods: It is argued that products of both superior quality as well as inferior quality are advertised. Through advertisement, demand for inferior goods can also be increase. However, such a claim is only partially true. This is because quality is a relative concept. What is inferior to one consumer can be superior to another. Advertisements promote all kinds of products and the consumer purchases them if it suits his/her requirements.
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