MCOM 214 Chapter Notes - Chapter 2: Gross Domestic Product, Puffery, Subliminal Stimuli
15 Sep 2016
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Sponsors advertise because they hope it will help them sell some product, service, or idea. Externalities: benefit or harm caused by the sale or consumption of products to people who are not involved in the transaction and didn"t pay for the product. Added value: the increase in worth of a product or service as a result of a particular activity. In the context of advertising, the added value is provided by the communication of benefits over and above those offered by the product itself. Accounts for 2 percent of the us gross domestic product. Effect on the value of products: added value comes from the consumer"s mind, products image is an inherent feature of the product itself. Primary demand: consumer demand for a whole product category. Selective demand: consumer demand for the particular advantages of one brand over another. Companies eliminated by competition may be because they served their customers least effectively.
