Author Question: List and describe the four aspects of how advertising lowers the cost of ... (Read 130 times)

brutforce

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List and describe the four aspects of how advertising lowers the cost of products.

Question 2

__________ occurs when a customer is upset about some aspect of a company's service delivery.
 Fill in the blank(s) with correct word



stanleka1

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Answer to Question 1

Four aspects of the nature of advertising, supporters argue, help lower the cost of products are:

1 . Due to the economies of scale (it costs less to produce products in large quantities), partly created by advertising's contribution to stimulating demand, products cost less than if there were no advertising at all. As broad-based demand stimulation results in lower production and administrative costs per unit produced, lower prices are passed on to consumers.

2 . Consumers have a greater variety of choice in products and services because advertising increases the probability of success that new products will succeed. The more products that succeed, the fewer losses firms incur from failed product introductions. In the end, this should make products cost less.

3 . The pressures of competition and the desire to have fresh, marketable brands motivate firms to produce improved products and brands and introduce lower-priced brands.

4 . The speed and reach of the advertising process aids in the diffusion of innovations. This means that new discoveries can be delivered to a large percentage of the marketplace very quickly. Innovations succeed when advertising communicates their benefits to the customer.

Answer to Question 2

Annoyance



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