question_answer 27)

'Expenditure on advertising is a social waste’. Do you agree? Discuss. 

Answer:

The opponents of advertising say that the expenditure on advertising is a social waste as it adds to the cost, multiplies the needs of the people and undermines social values. The proponents, however argue that advertising is very useful as it increases the reach, brings the per unit cost of production down and adds to the growth of the economy. Following are the points of criticism (i) Adds to Cost The opponents of advertising argue that advertising unnecessarily adds to the cost of product, which is on to the buyers in the form of high prices. It is line that advertisement of a product cost lots of money but it helps to increase the demand for the product as large number of potential buyers come to know about the availability of the products, its features etc persuaded to buy it. This increases the demand and production. As a result, the per unit cost of production co as the total cost is divided by larger number of units. (ii) Undermines Social Values Advertising undermines social values and promotes materialism. It breeds discontentment among people as they come to know about new products and feel dissatisfied with their present state of affairs. This criticism is not entirely Advertisement in fact helps buyer by informing them about the new products which may be improvement over the existing products. (iii) Confuses the Buyers Another criticism against advertisements that so many products are being advertised which makes simile claims that the buyer gets confused as to which one is true and which are should be relied upon. e.g., there are so many brands of soaps, shampoos, cars, TVs, cell phones etc which are advertised. The supporters of advertisement, however argued that we are all rational human beings who make our decisions for purchase of products on factors, such as price, style, size, etc. Thus the buyers can clear their confusion by analyzing the information provided on the advertisements and other sources before taking a decision to purchase a product. (iv) Encourages Sale of Inferior Product Advertising does not distinguish between superior and inferior products and persuade people to purchase even the inferiors products. The desired level of quality will depend on the economic states and preferences of the target customers. Advertisements sell products of a given quality and the buyers will buy, if it suits their requirements. (v) Some Advertisements are in Bad Taste Another criticism against advertising is that some advertisements are in bad taste. They show something which is not approved by some people. Some advertisement spoil the relationship between employer and employee, husband and wife etc. From the above discussion, we have learnt that through advertisements are criticized but still they have their own advantages. It is not a social waste; rather it adds value to the social cause by giving a boost to production and generating employment.