In the early 1980’s just as serious health effects were being noted about sugar consumption, Kellogg’s changed the name of Sugar Pops to Corn Pops (the sugar content did not change) and the name of Sugar Frosted Flakes to Frosted Flakes (still sugar content remained the same) while Tony the Tiger still touted the product; General Mills produces two cereals (Total and Wheaties) that are identical in content yet markets them as two different cereals (one for the healthy and one for the athletic) with different prices to different consumers. Most car ads tout the speed of the car (yet tell you not to drive that fast), stack champagne glasses on the hood of the car (does anyone you know drive that way?) and shows SUV’s driving through the mud and woods, yet most people use them for commuting on highways. This begs the question about the role of advertising in markets. While economists freely admit that advertising can earn millions for firms, economists often view advertising as wasteful since it does very little to inform consumers.
Prompt:Identify an ad you have seen recently (in the last two weeks) from TV, radio, print, internet. Do not trawl YouTube, etc. looking for ads or recall ads from the days of yore, for then you miss one of the central points of the discussion (paying attention to what is going on around you today) and discuss the role of the advertising in the marketplace. Specifically, what determinants of demand was the advertising attempting to deal with in order to impact sales? Please include an image or link to the advertisement with your post.
You can find the information in those links:https://openstax.org/books/principles-microeconomics-2e/pages/3-3-changes-in-equilibrium-price-and-quantity-the-four-step-process