Please Provide explainations 21) Critics charge that high advertising and promot
ID: 377909 • Letter: P
Question
Please Provide explainations
21) Critics charge that high advertising and promotion costs unnecessarily increase retail prices. Marketers most likely respond to this criticism by arguing that advertising ________.
A) provides essential psychological benefits about products
B) adds value by giving consumers product information
C) generates tax breaks for small businesses D) applies a functional value to the product E) lowers prices by increasing competition
22) A toothbrush that costs ten cents to manufacture may cost a consumer $3.00 to buy. According to critics, this is an example of ________.
A) deceptive advertising
B) redlining
C) excessive markup
D) high-pressure selling E) shoddy manufacturing
Explanation / Answer
21.Advertising is a form where either new products are introduced or existing products are given more concentration. It takes the products to the customers.There is no truth in critics charging that high advertising and promotional costs increase retail price.There are any other reasons that increase the retail price.What an advertisement really does is it adds value by giving consumers product information which in turn boosts the sales and target.So the answer is
Adds value by giving customers product information.
22.This difference can be understood as the difference between cost price and the selling price.The difference includes or covers up the cost of making the product and expenses and includes the profit for the seller.This is called as excessive mark up.