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.

Talking about how Indian buyer's choice is swayed by word of reassurance from the people he knows whereas, in markets like US, Canada and Japan, more people are influenced by conventional advertising. According to you, which of the following will be considered the merits of advertising? 

1. Advertising is a medium through which a large number of people can be reached over a past geographical area.
2. Advertising is a very economical mode of communication because overall cost of advertising gets spread over numerous communications linked established.
3. Due to additional cost incurred for advertisement, which eventually is borne by the customer, high income people enjoy more variety of products.
4. So many products are being advertised which causes confusion among the customers as to which one is worth purchasing.

1 and 2

Following are the benefits of advertising:

• Mass Reach: Advertising is a medium through which a large number of people can be reached over a vast geographical area.
• Enhancing Customer Satisfaction and Confidence: Advertising creates confidence amongst prospective buyers as they feel more comfortable and assured about the product quality and hence feel more satisfied.
• Expressiveness: With the developments in art, computer designs, and graphics, advertising has developed into one of the most forceful media of communication.
• Economy: Advertising is a very economical mode of communication if large number of people are to be reached.

3rd and 4th point in the question are the demerits of advertisement.