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 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.

Adds to Cost: The opponents of advertising argue that advertising unnecessarily adds to the cost of product, which is ultimately passed on to the buyers in the form of high prices. An advertisement on TV, for a few seconds, for example, costs the marketers several lakhs of rupees. Similarly an advertisement in print media say in a newspaper or a magazine costs the marketers a large amount of money. The money spent adds to the cost, which in an important factor in fixation of the price of a product.

 

 

OTHER OPTIONS

  • Undermines Social Values: An important criticism of advertising is that it undermines social values and promotes materialism. It breeds discontent among people as they come to know about new products and feel dissatisfied with their present state of affairs. Some advertisements show new life styles, which don’t find social approval.
  • Confuses the Buyers: A criticism against advertisement is that so many products are being advertised which makes similar claims that the buyer gets confused as to which one is true and which one should be relied upon. For example, we may note similar claims of whiteness or stain removing abilities in competing brands of detergent powder or claims of whiteness of tooth or ‘feelings of freshness’ in competing brands of toothpaste that it is sometimes confusing to us as to which one to buy.'
  • Encourages Sale of Inferior Products: Advertising does not distinguish between superior and inferior products and persuade people to purchase even the inferior products.