Advertisements Often Seek to Create Needs Rather Than Merely Show

question 56

Multiple Choice

Advertisements often seek to create needs rather than merely show how a product or service fulfills them. Many critics claim that this aspect of advertising has an adverse effect on consumers' values. Which of the following is the main reason for this claim?

• A)Creating needs is likely to discontinue social stereotyping.
• B)Consumers are always aware of the difference between needs and wants.
• C)Creating needs encourages materialism in people.
• D)Advertising leads to easily-content individuals.
• E)Marketers who create needs are likely to gain a greater market sharE.Critics argue that a major contributor to materialism is advertising that seeks to create needs rather than merely showing how a product or service fulfills them.

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Definitions:

Fair Value

The cost one would incur for acquiring an asset or the amount one would need to pay off a debt in a smooth transaction between parties in the market as of the date of valuation.

Land

The surface of the earth, considered as property and a basis for real estate transactions.

Successful-efforts Method

An accounting approach used in the oil and gas industry to capitalize only those costs associated with successfully locating new oil and natural gas reserves.

Full-cost Method

An accounting practice where all direct and indirect costs of producing an asset are capitalized and then amortized over time.