UNIT 5-BE A CRITICAL CONSUMER Section 1.5 Advertising and Consumer Decisions

Section 1.5 Advertising & Consumer Decisions  Goals: 1. Describe the different types of advertising. 2. Explain how you can recognize deceptive advertising.

Key Terms  Advertising  Puffery WOW, that’s it!!!!!

Section 1.5 Advertising & Consumer Decisions WWhy do businesses advertise? TTo encourage consumers to buy their products so they can make a profit. $$$$$$$$$$$$$$$$$$$$$$$$$$$$ WWhat is advertising? AAdvertising is a paid form of communication sent out by a business about its product or service.

5 Types of Advertising 1. 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. 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.

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 Examples Persuasive Message: Women will have more self-esteem if they read Marie Claire magazine. Keep a high self- esteem even after taking your heels off.

Persuasive Advertisement Example Persuasive Message: People will have double the fun if they chew Doublemint gum.

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.  Puffery is legal