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There are two types of advertising; information and branding advertising. Information branding is commercials that present facts to influence consumer buying decisions; it is characterized by price comparison. It also has its focus on reasonable consumers and is also transactional because it is transactional since it deals with the exchange of money. Branding advertising is used to establish awareness of a given brand to increase consumer loyalty.
There are different types of deceitful advertising; information advertising can be deceitful through; false claims, claims that conceal tactual facts, ambiguous claims, and puffery. Although deceitful advertising is different from false advertising, the Federal Trade Commission (FTC) governs all the antitrust laws. The body argues that deceptive and unfair advertising practices are illegal and is charged with preventing these illegal practices. When judging the level of deception, FTC uses two approaches; the reasonable consumer standard, which assumes that protection should be extended to advertising that could mislead an experienced consumer. Secondly, the ignorant consumer standard presumes that protection against deceitful advertising should extend to consumers with less experience in the market.
Consumerism refers to identifying oneself with the products one buys and the need to buy them for existence. This places consumers lives within the aspects of goods and services. Advertisements play a crucial role in creating consumer needs; advertisers are responsible for restraining their power. The use of advertising in every aspect may create difficulty in the differences between business and life. The business ethics that govern consumers include gullibility, mistreatment, and response to consumer mistreatment. There are five approaches to arranging the responsibilities of consumers of spending money, the wary consumer. This relates to the caveat emptor doctrine, which means that the consumer ought to be aware. The contracting consumer views transactions as more than a simple exchange of money and requires freedom, information, and honesty. The protected consumer is grave for losses, even whenever they go wrong. The renegade consumer goes beyond the contractual and legal boundaries system to respond to any defect in goods. Lastly, the capable consumer values a free market by creating a quality life at a higher pace.
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