commerce101: Danger of Advertising

Danger of Advertising

To Consumer

1. He may be misled by false claims

A consumer may be misled into buying a product or service because of its false claims

2. He may have difficulty in choosing the brand

A consumer may have difficulty in choosing the right product because of the claims that been made by different type of brands

3. He may make unnecessary purchases

A consumer may be persuaded into buying something which he did not intend to buy as a result of successful sales publicity stunt employed by advertisers like giving special offers and gifts for purchases

4. He may be irrational in his buying

A consumer may base his choice on the appeal in the advertisement which has nothing to do with the quality of the goods

However, the dangers of advertising to consumers are minimized through consumer protection afforded by the Consumer Association and the government (See the topic on Consumer Protection)

To Producer

1. His production cost increases

A producer’s cost of production increase because of the additional cost of advertising

2. His expenditure may not be justifiable

A producer may spend more on advertising that the return in terms of increasing the sales

3. He may incur financial losses

a. His advertisements have to be continuously improved upon and this means increasing costs

b. A price war (by undercutting his competitors) may be resorted to or to achieve his aims. Due to this, it may lead to financial losses

Devices Used in Advertising

 These are tools used by the advertiser in his promotion campaign to appeal to the certain group of consumers

 The advertiser influences the consumers into believing that they will realize these needs and desires upon the purchases of certain products

 These are some of devices used in advertisements to influence consumers purchases

1. Sex appeal – e.g. Cosmetic

2. Romance appeal – e.g. Perfume

3. Economy appeal – e.g. Fuel savings and second – hand car

4. Appeal for manliness – e.g. Cars

5. Appeal for motherly love – e.g. Cute babies promoting a certain milk product

6. Appeal for cleanliness – e.g. The effective using a certain detergent to wash soiled cloths

7. Appeal to safety – e.g. The safety features of an machine

8. Appeal to prestige or status – The advertisement may relate well known person with the use of a certain product or service like credit card, shampoo