'Advertising costs are passed on to the consumers in the form of high prices' and 'some advertisements are in bad taste.” Do you agree? Give reasons in support of your answer.

Yes, I do agree with this statement. The following facts clarify it:

(i) Adds to Costs: An organisation has to spend large amount on advertising. It increases the cost of the products. To meet this expenditure, price of the product is raised. No manufacturer pays for the advertising expenses out of his pocket. Advertising, therefore, leads to unnecessary rise in prices. In this reference it is said that advertising costs are passed on to the consumers in the form of high prices. (ii) Some Advertisements are in Bad Taste: Many times, foul language and objectionable pictures are used in advertising in order to attract a particular class. They may be insulting to a particular class.It causes decay of social values. Such kind of advertising is generally opposed as it hurts the feelings of the people. In this reference it is said that some advertisements are in bad taste.

OR

No, I do not agree with this statement. It is clarified from the following facts: (i) It does not Increase Costs: It is said that advertisement causes unnecessary increase in costs. However, the reality is that advertisement increases the demand for a product which in turn raises the scale of production. A lot of saving is affected in case of large production. Therefore, it can be said that advertisement is helpful in making available good quality products and services at cheap rates. (ii) It does not Create Bad Taste: It is wrong to say that advertisement creates a bad taste. Every seller makes efforts, in his own way to attract customers. In making such an effort, he sometimes exaggerates things and presents some exciting image of the product. Some people consider it modernity while others call it ungentlemanly behaviour. Therefore, it can be behaviour asserted that the blame does not go to advertisement, but it is a matter of people's own understanding.