Discuss any two drawbacks of Advertising
Answers
Explanation:
i. Deferred Revenue Expenditure:
It is a deferred revenue expenditure, as the results are not immediate. As advertising occupies a substantial portion of the total budget of the organisation. Hence, investing a large sum in it does not necessarily yield immediate results thus limiting its utility.
ii. Misrepresentation of Facts:
A major drawback of advertising is misrepresentation of facts regarding products and services. Advertisers usually misrepresent unreal/false benefits of a product and make tall claims to excite people to indulge in actions leading to their benefit, but opposed to consumer’s self-interest.
Answer:
According to the critics, advertising has the following disadvantages:
(1) Adds to Costs
(2) Undermines Social Values
(3) Confuses the Buyers
(4) Encourages Sale of Inferior Products
(5) Some Advertisement is in Bad Taste
Explanation:
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