Which of the following is NOT an argument made by the opponents of advertising under the objection ‘adds to cost’?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → The overall cost of advertising gets spread over numerous communication links.
Option (1) Advertising unnecessarily adds to the cost of the product. — An argument under ‘adds to cost’. Opponents say advertising unnecessarily adds to the cost of the product.
Option (2) The cost of advertising is passed on to the buyers in the form of high prices. — An argument under ‘adds to cost’. They say this cost is passed on to the buyers in the form of high prices.
Option (3) The money spent on advertising is an important factor in fixing the price of a product. — An argument under ‘adds to cost’. They say the money spent adds to the cost, which is an important factor in fixing the price.
Option (4) The overall cost of advertising gets spread over numerous communication links. — Not an argument under ‘adds to cost’. This line supports advertising. It is part of the merit called economy: because advertising reaches so many people, its total cost is spread over them, and the cost of reaching each person comes low.
NCERT (2026-27 Edition): “(iv) Economy: Advertising is a very economical mode of communication if large number of people are to be reached. Because of its wide reach, the overall cost of advertising gets spread over numerous communication links established. As a result the per-unit cost of reach comes low.” “1. 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. …” |