Sunday, May 04, 2008

Cigarette Advertisements - Thompson 17

In Indonesia, most of the country’s GDP is contributed by none other than our cigarette industries. Cigarettes have contributed a good feeling for most people, but a severe disease in the long run. The fact that the effects of consuming cigarette are the same on different types of cigarettes brand, so why there are a lot of advertisement about it?

The firms certainly do not gives out any information about what is the product is made of, instead they gives out these images of manly figure, talents and skills, or following “A“paper. They never show the product themselves in the advertisement, only the symbol of it.

Not only the advertisement did not give any image of the product, some of them start to give out somewhat witty looking slogan, which they change every now and then. So I wonder what is the purpose of advertisement?

All I could think of is that they gives out information of the product and persuade the people with any factors necessary. The fact that firms does not give any information about the product, will this course of action is not an effective advertisement?


In economic class the effect of advertisement is to shift the demand to the right, so an effective advertisement could be determined by the magnitude of the shift. The further the shift, the effective it is, so I am really wondering does those cigarette advertisements gives any significant shift for the demand for cigarettes.

So finding out the effectiveness of cigarettes advertisement is one of the optional EE econ questions that I made. If I were to find out this answer using a viable method, I could see that whether firms are really wasting scarce resources to make billboard to advertise their freaking product.

I am really annoyed that when I go around the town I kept seeing these stupid advertisements along the way, and finding out that those freaking advertisement is not affective. On the other hand if it is affective then most people smoke because of it, so both are bad in a way. Freaking cigarettes, serves you right when they government double the tax on you!


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