Are products with advertisements are of high quality? - NEPAL MONETARY SOLUTIONS (NMS)

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Wednesday, April 29, 2015

Are products with advertisements are of high quality?

Generally, people believe that products with the advertisement or of high price are of high quality. But generally, it is not true. Advertisement of the particular product is done to make the product known to people and to increase sales. And those products which are advertised are normally of the higher price compared to not advertised product for the same product type.

Why the price of advertised products are high?

Price of the advertised product is high because of advertisement charges incurred. Advertisement charges may be of higher amount depending on advertisement type and these all charges are ultimately recovered from consumers. Remember all the charges and profit margin related to products are included in sales price in order to gain profit.

So whenever two product of the same type is differently priced, don't think that higher priced product is of higher quality. So don't judge product quality just by price. Judge product quality after using it.

2 comments:

  1. Yes, advertisement expenses of the company are added to the product price.

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