Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Marketing

Question:

Read the following case study and answer question.

Ranvijay is an entrepreneur who has set up his enterprise with the manufacturing of an innovative product i.e. GPRS glasses with Al feature which is going to help the blind people in navigation and identifying places and people in front through voice. He has given a unique name to his product "Elinir". For all the usage instructions to reach to the consumer, he got them printed over the packaging which is made up of biodegradable material. He wants to get it advertised by some celebrity but fears that the cost of product may increase with the involvement of celebrity and will make it unaffordable. He is also planning to open his own outlets and his own website in order to sell the product.

Find out the objection to advertising discussed in the above case :

Options:

Undermines social values

Adds to cost

Confuses the buyer

Encourages the sale of inferior products

Correct Answer:

Adds to cost

Explanation:

The correct answer is option (2) : Adds to cost

The objection to advertising discussed in the above case is :

(2) Adds to cost

Ranvijay is concerned that involving a celebrity in the advertising may increase the cost of the product and make it unaffordable for the target consumers.

1. Undermines social values: Critics argue that advertising promotes materialism and breeds discontent among people. Proponents argue that advertising informs buyers about new products and that the final choice to buy or not to buy rests with the buyers.

2. Adds to cost: Opponents argue that advertising unnecessarily adds to the cost of a product, which is ultimately passed on to the buyers in the form of high prices. Proponents argue that advertising can increase demand for the product, which can lead to lower per-unit costs.

3. Confuses the buyer: Critics argue that advertising can confuse buyers because so many products are being advertised that make similar claims. Proponents argue that advertising provides information to buyers that can help them make informed decisions about which products to buy.

4. Encourages the sale of inferior products: Critics argue that advertising does not distinguish between superior and inferior products and persuades people to purchase even inferior products. Proponents argue that advertisements sell products of a given quality and that buyers will buy if the advertised product satisfies some of their needs.