UNIT 5-BE A CRITICAL CONSUMER
Section 1.5 Advertising and Consumer Decisions
Section 1.5
Advertising & Consumer Decisions

Goals:
1.
2.
Describe the different types of
advertising.
Explain how you can recognize
deceptive advertising.
Key Terms


Advertising
Puffery
WOW, that’s it!!!!!
Section 1.5 Advertising & Consumer
Decisions

Why do businesses advertise?
 To
encourage consumers to buy their products so
they can make a profit.
$$$$$$$$$$$$$$$$$$$$$$$$$$$$

What is advertising?
 Advertising
is a paid form of communication sent
out by a business about its product or service.
5 Types of Advertising
Brand Advertising
2.
Informative Advertising
3.
Comparative Advertising
4.
Defensive Advertising
5.
Persuasive Advertising
Let’s take a look at each one.
Wait for it…………………..
1.
1. Brand Advertising
Brand Advertising is to cause you to remember a
particular brand name.
 Concept: If you remember the brand name you will
be more likely to buy the product when you shop.
 Used to introduce new products or reinforce
consumer loyalty.
 Types of Brand Advertising
 Jingles


and Slogans
Benefits: Consistent quality
Costs:
Cost of advertising rolled into price
2. Informative Advertising
Informative Advertising is designed to influence you
to buy a product by educating you about the
product’s benefits.
 Concept: Provides information that helps you make
a good buying decision.
 Used for complex or technical products.
 Don’t include downsides of the product.
 Example: When Volvo cars make
television advertisements that educate
consumers about their product safety.
3. Comparative Advertising




Comparative Advertising tries to encourage you to
buy their product by comparing it to competing
products.
Concept: To convince you to buy the advertised
product instead of the targeted competing product.
Highlights the best qualities of a product.
Exploits weaknesses of a competitor’s product.



Example: Geico Car Insurance Company
advertisements comparing their insurance
benefits over other insurance companies.
4. Defensive Advertising
Defensive Advertising is the counter attack from
comparative ads to respond to claims made by
other companies.
 Concept: By defending themselves they are trying
to prove they have the better product.
 Does not provide a complete or balanced picture of
either products.

VS.
Persuasive Advertisement Examples
Keep a
high selfesteem
even after
taking your
heels off.
Persuasive Message:
Women will have
more self-esteem if
they read Marie
Claire magazine.
5. Persuasive Advertising
Persuasive Advertising is designed to appeal to your
emotions to influence you to buy it.
 Concept: Companies try to convince you that
buying these products will make you happier, more
successful or more satisfied.
 They do not provide much useful information.
 Attractive people who appear happy or popular.
Persuasive Advertisement Example
Persuasive Message:
People will have
double the fun if they
chew Doublemint gum.
Costs & Benefits of Advertising to
Consumers!


Costs: Advertising is built into the price you pay
when you buy a good or service.
Benefits: If advertising increases sales it allows
businesses to produce
 a higher volume,
 which lowers production costs per product,
 and may lower prices.
Deceptive Ads vs. Puffery

Deceptive Advertising is DELIBERATELY designed to
mislead you.
Factually Wrong- Deceptive
 Advertisers use vague claims to avoid fines for deceptive
ads.


Puffery is an innocent exaggeration.
50% off or enormous markdowns (markups too high to
begin with.)
 Free gifts when buy products. Complete information
necessary (even in small print) is legal.


Puffery is legal
Advertising & Decision Making



Never make decision based upon advertisements
alone.
Gather information from several sources.
Evaluate information and consider alternative
choices.