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3. (a) Outline the functions of advertising goods and services - Junior Cycle Home Economics - Question 3 - 2019
Question 3
3. (a) Outline the functions of advertising goods and services. (b) (i) Name four different advertising techniques used by companies to market luxury goods. (ii) C... show full transcript
Worked Solution & Example Answer:3. (a) Outline the functions of advertising goods and services - Junior Cycle Home Economics - Question 3 - 2019
Step 1
Outline the functions of advertising goods and services.
Answer
Advertising serves multiple essential functions:
- Introduction of Products: It brings new products into the market, ensuring consumers are aware of their availability.
- Information Provision: Provides critical information about product features, benefits, and pricing.
- Brand Promotion: Helps in building and promoting brand identity, fostering brand loyalty.
- Market Expansion: Facilitates the increase of sales and market share, allowing businesses to grow and create employment opportunities.
Step 2
Step 3
Choose one technique named and explain why you think it is effective.
Answer
Technique: Celebrity endorsements
Celebrity endorsements are highly effective because they leverage the popularity and influence of the celebrity, creating an aspirational appeal for the product. When a well-known personality promotes a luxury item, it helps to enhance the brand's prestige and credibility, making consumers feel that they too can attain a status similar to that of the celebrity. This psychological connection can significantly boost consumer interest and increase sales.
Step 4
Describe how the Consumer Protection Act 2007 (Consumer Information Act 1978) provides protection to the consumer.
Answer
The Consumer Protection Act 2007 ensures:
- Compliance with Legislation: Companies must adhere to laws that protect consumer rights.
- Protection from Misleading Practices: It protects consumers from false and misleading claims about products and services.
- Cooling Off Period: Consumers are given a 14-day cooling-off period during which they can cancel their purchase without penalty.
Step 5
Suggest a different advantage to the consumer for each of the following:
Answer
i) Loss-leader pricing: Consumers can avail of goods at a discounted price, allowing them to save money on essential items while potentially discovering new products.
ii) Bulk buying: Consumers save money by purchasing in larger quantities, often leading to significant savings over time.
iii) Credit buying: Consumers can obtain products immediately, paying for them later, which allows for better financial planning for larger purchases.