¶ … advertising claim that firms advertise to manipulate people's tastes and defenders argue that advertising provides information. Both are correct, and characterizing these views as "pro advertising" or the reverse is not particularly accurate. Most industries exist in a state of monopolistic competition, and advertising is one of the ways that companies can differentiate themselves from the competition, and through this differentiation companies can exert a greater degree of market control (No author, 2012).
Firms sometimes use advertising as an informational tool, as it provides an opportunity to reveal to consumers the differences between the advertised product and its competitors. Typically, each product within an industry will differ at least slightly with respect to its design and the quality level of the workmanship and other inputs. In addition, firms use other marketing elements such as distribution to help with differentiation. Advertisers often use brands as shorthand for...
Further, there is evidence that consumers sometimes develop personal associations with brands (Fournier & Yao, 1997). As such, advertising might be construed as manipulating's people's tastes, although arguably if somebody is willing to let his or her tastes be manipulated by something other than the product/service itself, that is a reflection of a desire to make a change to his/her purchasing habits.
Examples can be found in any industry, but restaurants are an excellent example of monopolistic competition, even with specific segments. Quick service restaurants are a good example because they advertise extensively. No two chains have identical menus, although they can be similar. Many restaurants in this business focus on different foods themes, however, and different gimmicks within those…
