1. Consent order. When a company signs a consent order, it agrees to correct or discontinue the questionable practices. Proposed orders are given a public hearing, and consumer comments are taken into account. Companies that violate a consent order can be fined. Read the rest of this entry »
Ethics are the moral principles and values that govern an individual or group. Critics of advertising claim that the industry overall does not adhere to clear ethical standards. They say it lacks a strong code of professional conduct and does not always distinguish correctly between what is morally right and wrong, instead focusing solely on making money. Read the rest of this entry »
From the standpoint of advertising as information, sometimes known as the “market competition” model, the economic role of advertising is to provide information to the marketplace. Read the rest of this entry »
In the view of advertising as market power, advertising’s main role is product differentiation. In other words, advertising helps change consumer tastes and establishes brand loyalty. Consumers are fairly passive, easily influenced by advertising. Read the rest of this entry »
Consumers are exposed to a vast number of commercial messages each day—anywhere from 500 to 3,000, depending on how one defines a “message” and how much the individual chooses to use the media on a given day. Read the rest of this entry »
