Evaluating the Social, Ethical and Economic Aspects of Advertising 
Chapter 22
EVALUATING THE SOCIAL, ETHICAL, AND
ECONOMIC ASPECTS OF ADVERTISING
Chapter Overview
Advertising is a very powerful and influential force in our society, and this text would not be complete without considering the various perspectives and criticisms regarding its social and economic effects. The first half of the chapter focuses on the various criticisms of advertising from an ethical and societal perspective. Attention is then given to appraising the effects of advertising on the economy including its effect on consumer choice, competition, and product costs and prices. Perspectives regarding the economic effects of advertising are summarized by considering two principal models or schools of thought: the Advertising = Market Power and Advertising = Information perspectives. It should be noted that the primary focus in this chapter is on social and economic aspects of advertising, as this is the promotional mix variable that is the subject of the most concern, controversy, and regulation.
Learning Objectives
1. To consider various perspectives concerning the social, ethical and economic aspects of advertising and promotion.
2. To examine and evaluate the social criticisms of advertising.
3. To examine the economic role of advertising and its effects on consumer choice, competition, and product costs and prices.
Chapter and Lecture Outline
I. INTRODUCTION
Because of its high visibility and pervasiveness, along with its persuasive character, advertising has been the subject of a great deal of controversy and criticism. Various parties and scholars have attacked advertising for a variety of reasons including its excessiveness, the way it influences society, the methods used by advertisers, its supposed exploitation of consumers, and its effect on our economic system. The role of advertising in society is a controversial one and a discussion of the area would not be complete without considering the various
EVALUATING THE SOCIAL, ETHICAL, AND
ECONOMIC ASPECTS OF ADVERTISING
Chapter Overview
Advertising is a very powerful and influential force in our society, and this text would not be complete without considering the various perspectives and criticisms regarding its social and economic effects. The first half of the chapter focuses on the various criticisms of advertising from an ethical and societal perspective. Attention is then given to appraising the effects of advertising on the economy including its effect on consumer choice, competition, and product costs and prices. Perspectives regarding the economic effects of advertising are summarized by considering two principal models or schools of thought: the Advertising = Market Power and Advertising = Information perspectives. It should be noted that the primary focus in this chapter is on social and economic aspects of advertising, as this is the promotional mix variable that is the subject of the most concern, controversy, and regulation.
Learning Objectives
1. To consider various perspectives concerning the social, ethical and economic aspects of advertising and promotion.
2. To examine and evaluate the social criticisms of advertising.
3. To examine the economic role of advertising and its effects on consumer choice, competition, and product costs and prices.
Chapter and Lecture Outline
I. INTRODUCTION
Because of its high visibility and pervasiveness, along with its persuasive character, advertising has been the subject of a great deal of controversy and criticism. Various parties and scholars have attacked advertising for a variety of reasons including its excessiveness, the way it influences society, the methods used by advertisers, its supposed exploitation of consumers, and its effect on our economic system. The role of advertising in society is a controversial one and a discussion of the area would not be complete without considering the various