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Advertising Allegedly Increases Prices

Essay by   •  February 21, 2017  •  Essay  •  646 Words (3 Pages)  •  948 Views

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Advertising increases selling price because if there’s no advertising the prices it self will reduced. Advertising menambah pendapatan karena consumers rarely ask for price reduction, for example kaya ibu2 biasanya  nego / tawar menawar dipasar.

The difference between production cost and selling cost are selling cost is the expense that happens because of the business for stimulates the demanded product, it effects only on the permintaan product meanwhile production costs only effecting its own supply. And selling costs is a part of advertising. all advertising consist of persuasion and information, same as all of the costs occurred in business we can not distinguish one of the costs they completed each other.

National brand has a market who’s an innovator, they made a unique and different product that has a value for their consumers, they develop a market and expand them by doing a contribution and put a lot of expenses and effort to make a large market. As the time goes by national brands compete with the private brands which is brands that were made by the consumer it self for example Kylie lipkit, is a brand that made by one of the consumer and sell it to the public.

Advertising lowers real prices over time

Advertising creates a larger market due to reach more people at one time and it’s more effiecient than only personal selling. heavy advertising stimulates price cutting at the retail level, where retailers com­peting for the same customers gradually reduce their margins in order to stimulate turnover. Price leaders in a given market have the lowest costs relative to the competition. Thus, price leaders set their prices at a level that earns them a higher rate of return than their higher cost followers, who must match the leaders’ prices or lose market share. Advertising, to be sure, is not the only, or even the major, cause of declining real prices. Nevertheless, it is one factor of production that contributes to the drive for efficiency.

(( jujur aja yg ini gue rada rada gangerti makanya gue ngikutin kata kata buku gitu aja HUHUHUH I’m so sorry T____T ))

Ini bahasa indonya kalo bingung gue nulis apaan

Perbedaan antara production cost and selling costs adalah selling cost are pengeluaran yang terjadi karena bisnis untuk menyimulasikan permintaan produk. Selling cost diduga hanya berefek kepada permintaan product sedangkan production costs hanya berefek kepada supplies. Dan selling cost itu termasuk dalam advertising. Semua advertising mengandung hal yang informative dan persuative sama dengan semua harga terjadi karena bisnis pada suatu production cost dan selling cost karena kita tidak bisa menghilangkan salah satu dari mereka.



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