Scenario 4-4
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 salesman replied 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 percent of the cost of the vehicle comes from expense for national and local advertising.
-(Scenario 4-4) Joe Rowan was frustrated to learn that such a large percentage of the price of a car came from advertising expenses.He said to the dealer spokesperson, "If you would stop advertising so much, I could save money on this car.Heck, I would be willing to spend my own time and money to do an Internet search and buy consumer books to find a good car.There's probably not much difference in this one anyway, you can just say whatever you want in your ads!" Which criticism of advertising is most disconcerting to Joe at this moment?

Question

Quizplus · Accepted Answer

Joe's frustration with the amount of advertising expenses in the price of the car suggests that he believes advertising wastes resources. He also indicates a willingness to conduct his own research, which undermines the idea that advertising is necessary for informing consumers about products.

Scenario 4-4 Joe Rowan Walked into Pederson Toyota One Day and Began