Scenario 6-5
Joe Rowan walked into Pederson Toyota one day and began looking at price stickers on Toyota Camrys. He was interested in that model because he had seen a number of television and magazine ads describing the car's features and reputation for reliability. After closely examining the stickers, Joe noticed a line that said "Dealer Promotion Allowance - $125.00." Joe asked a salesperson what that meant. The reply was that it was a charge that helped the dealership pay for local advertising to encourage consumers to shop at that particular dealer. After further discussion, Joe learned that almost 5% of the cost of the vehicle comes from expense for national and local advertising.
-(Scenario 6-5) After the comments in the above question were made, the salesperson replied, "If our industry didn't do so much advertising you probably couldn't afford to buy that computer to do your own research." Which of the following pros of advertising is the salesperson likely using to support his comment?

Question

Quizplus · Accepted Answer

The salesperson is likely using the pro of advertising that suggests it fosters more rapid new product success, thus lowering the cost. The argument is that without advertising, new products would not be successful as quickly and therefore the cost of technology, such as computers, would be higher.

Scenario 6-5 Joe Rowan Walked into Pederson Toyota One Day and Began