Nothing sways an Indian buyer’s choice more than a word of reassurance from the people he knows. Even for the purchases like cars, mobile phones and home loans, majority of the consumers in India rely on the references from their friends and relatives while making their decisions. The story is different in developed economies. Take the case of automobiles. In markets like the US, Canada and Japan, more people are influenced by conventional advertising by automobile companies, in developing markets like India, Malaysia and Thailand it’s the neighbor or the colleague who tips the scales one way or the other. “In case of luxury goods, the psyche of Indians has always been different. Buying a car is a family decision, so it is only natural that all the members of the family will talk to all the other users of a similar products, who they know”, General Motors India director P Balendran said. When the whole world is going crazy with Internet and mobile marketing, it is interesting that for Indians it’s still conventional advertising and word of mouth campaigns that sways their choices. Unlike in the West, Indians come from a very closely-knit society where people get influenced by their peers, relatives and local celebrities. People are more than willing to accept a brand if it’s endorsed by their favorite superstar or is recommended by their close associates.

Though advertising is one of the most frequently used medium of promotion of goods and services, it attracts lots of criticism. According to you, which of the following statements justify the limitations which accompany the concept of advertisement?

• The concept of advertisements adds to the cost of the product which is ultimately passed on to the buyers in the form of high prices and reduced demand for the same.
• Advertisement enhances the social values and decreases the materialism in the society.
• Due to availability of number of products, number of advertisements also increases, which causes an increase in the confusion of buyers.
• Advertisement distinguishes between superior and inferior products which cause a decline in the revenue of the firm.

1 and 3

Following are the objections to advertisement, or we can say major criticism to advertisement:

• 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.
• Undermines social values: Another important criticism of advertising is that it undermines social values and promotes materialism. 
• Confuses the buyers: Another 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.
• Encourages sale of inferior products: Advertising does not distinguish between superior and inferior products and persuade people to purchase even the inferior products.