Explain the difference between informational advertising and persuasive advertising. Give an example of a product that would be the subject of each type of advertising and explain why that type of advertising fits the product
What will be an ideal response?
Informational advertising explains the features of a good while persuasive advertising tries to influence a consumer's tastes and preferences. Informational advertising is used when a consumer can assess the benefits of the good before purchasing while persuasive advertising is used when a consumer must purchase the good to determine the good's benefits. Furniture would be advertised by informational advertising. The consumer can touch and try the furniture out before purchasing. A candy bar would be advertised by persuasive advertising since you must eat the candy before you know whether or not you will like it.
You might also like to view...
Which of the following is a solution to the problem of moral hazard in the labor market?
A) Provision of real wages B) Provision of nominal wages C) Provision of efficiency wages D) Provision of minimum wages
Holding nonmonetary assets and converting them to money when necessary is justifiable so long as
A) nonmonetary assets pay an interest rate above that available on money. B) nonmonetary assets pay an interest rate below that available on money. C) money, and not nonmonetary assets, are generally used in transactions. D) money and nonmonetary assets are both used as bartering items.
The nation of Aquilonia has decided to end its policy of not trading with the rest of the world. When it ends its trade restrictions, it discovers that it is importing incense, exporting steel, and neither importing nor exporting rugs. We can conclude that Aquilonia's new free-trade policy has
a. increased consumer surplus and producer surplus in the incense market. b. increased consumer surplus in the steel market and left producer surplus in the rug market unchanged. c. decreased consumer surplus in both the steel and rug markets. d. decreased consumer surplus in the steel market and increased total surplus in the incense market.
If the price of gasoline rose from $2.85 to $2.95 per gallon, your expenditure on gasoline would increase if your price elasticity of demand for gasoline equals
A) 1.25. B) 1.00. C) 0.75. D) Total revenue would increase at all of the above elasticities.