Question

provide an example(s) where advertising has positive benefits for consumers. Provide examples where advertising has negative effects. The Government has regulated certain advertising such as cigarettes and marketing to children. Should all advertising be regulated?

Answer 1

Advertising have positive as well as negative benefits to consumers.

There are many advertisement in the local newspaper and television which helps connecting right consumer to the right product. Sometime consumers are not able to find their right choice, advertisement helps in sorting this out. Consumers are updated about the products launched in the market, products launched to the competitive of the product you are using, pricing behavior of substitute goods available in the market which helps in protecting rights of consumers.

Negative advertisement includes advertisement of illegal products like cigarettes, liquor. Even if they give warning at the end of advertisement, but some consumers are much addicted to these products which leave a bad impression to the society. The scenes which are shows in condom advertisement leaves negative impact of children, these kind pf advertisement must be published with some limits.

As government have regulated the advertisement of certain products, they should keep their boundaries only till that as regulation of other advertisement will create some inefficiency in perfect competitive market.