The cost of advertising is ultimately borne by the

Assessment: WAEC SSCE - Commerce - 2009 (Objective) Subject: Commerce

Question 1 Report

The cost of advertising is ultimately borne by the
Answer Details
The cost of advertising is ultimately borne by the consumer. When a manufacturer advertises a product, they include the cost of advertising in the price of the product. Therefore, the consumer pays for the advertising through a higher price for the product. This is because manufacturers try to recoup their advertising costs and make a profit by charging a higher price. Additionally, advertising costs may also be passed on to the retailer and wholesaler, who may also charge a higher price to the consumer to make up for these costs. However, in the end, it is the consumer who ultimately pays for the advertising through higher prices.

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