TV commercials/advertisements cause Inflation

[bearice]

Quote from Spiker:

How is your Mamma's Recipe IPO coming along .......tell her to send me some samples of apple pie .

For the time being:

http://www.great-salmon-recipes.com/

 

[bearice]

Global ad spending outstrips U.S. growth

http://edition.cnn.com/2011/BUSINESS/04/28/advertising.global.growth.ft/index.html

 

[Scataphagos]

If you shop wisely, you can save a TON of money on almost everything.

If you just buy the name brand advertised on TV, you'll usually overpay like a suckerfish.

 

[peace2011]

A saleswoman came to my house and I purchased 5 kg washing powder and I received 12% discount for each kg I purchased. I think this company does not advertise its products on TV and other medias. So the 12% money saved on advertisement benefits buyers thus reducing inflation by 12%. I agree that TV commercials/advertisements cause Inflation. Also I received some free products for each kg washing powder I purchased. So I think the total discount I received is 15%. I will purchase 12 kg when this saleswoman comes again.

 

[zdreg]

Quote from bearice:

Consumers ultimately pay for TV commercials/advertisements because the advertisement cost is added to final selling price of the product.

Example, if the cost of the product is $5 and the advertisement cost is $1 the the product is sold for $6. So ultimately consumer pay $1 additonal charge.

Few people watch TV advertisements because they change channels when Ads appear. I switch off the TV when Ads appear. So TV Advertisements is one of the biggest waste of money.

TV advertisements are expensive and in some cases they are highly expensive when the TV program has high viewership.

Channel companies can charge viewers/customers certain subcription money per month and get rid of TV advertisements. Also it would be non-stop TV program only. No looking at stupid ads people face.

advertising helps to create and enlarge a market for a product. to give an extreme e.g. if only one car rolled off an assembly line the cost to produce and support may be 10M. by the 100,000 car the cost may be down to$15000. without advertising the market is very small or nonexistent as consumers are unaware of the existence of the product or have extemely limited knowledge about the product.

 

[peace2011]

Quote from zdreg:

advertising helps to create and enlarge a market for a product. to give an extreme e.g. if only one car rolled off an assembly line the cost to produce and support may be 10M. by the 100,000 car the cost may be down to$15000. without advertising the market is very small or nonexistent as consumers are unaware of the existence of the product or have extemely limited knowledge about the product.

Advertisement for food products is waste of money because companies should distribute free samples instead of advertising. When consumers taste the product there will be buy it in future. Also few people watch expensive advertisements so they are waste of money.