Comment by socalgal2
2 hours ago
And yet advertising raises demand, which in intern causes people to offer to meet that demand which means competition, which lowers prices.
Lots of examples of this cycle you can search for.
2 hours ago
And yet advertising raises demand, which in intern causes people to offer to meet that demand which means competition, which lowers prices.
Lots of examples of this cycle you can search for.
That only works for smaller and unestablished brands. There are diminishing returns to the economy of scale.
Coca-cola, for example, isn't going to lower their prices in response to increased demand from their $4 billion marketing budget.