Artificial Intelligence Applies To Business Environment (Paperback) | Released: 14 Dec 2018

Can advertising influence consumption behavior by (AI) marketing research survey method?Advertising is a subject on which people tend to hold strong and often opposing views, and economists are not expectations to this. Some economists regard advertising as one means by which firms concentrate on promoting whose tastes and opinions in the direction of their products and also more generally in favor of private consumption ( consumer behavior). Other economists see advertising as an efficient way by which firms supply information to potential consumers. Otherwise, some economists see advertising as a barrier inhibiting new entrants into an industry thereby enabling the established firms to reap high profits, when others see advertising as evidence of competition and an aid to new entrants in establishing themselves. So, it seems advertising can influence consumer choices possibly. Advertising relatives to sales varies considerably between industries. For example, the ratio of advertising in 1968 year varied from over 15% in the toilet preparations industry to over 10% in the soap and detergents industry to near is in a number of toilet preparation producer industries. A distinction is frequently made between information an persuasive advertising, and it is often suggested that some forms of advertising ( such as classified ads.) are likely to have more informative content than other forms ( such as television advertising).What is the sale of advertising in the demand function? One response is that a firm can sell more of its products because consumers have more information on that product. The information may relate to its existence, price, quality etc. Thus advertising is seen as essentially supplying information to consumers how to choose the similar kinds of products to decide which is the suitable product to buy. The other response is that advertising seeks to persuade consumers to purchase with favored people or situations, repetition of the same message. This advertising seeks to promote tastes rather than to inform. One firms' advertising may not be successful through false judgement by that firm and its advertisers or because of the impact of the advertising of other firms. The difference between the two responses can be put in terms of the conventional; utility maximization approach top consumer demand theory. The first response regards consumers' taste ( i.e. the utility function) as fixed and advertising informs the consumer about availability, price etc. So, that utility maximizing process can take place more effectively . The second response regards advertising and seeking to promote consumers' tastes and change the consumers' utility function in a manner favorable to the advertiser. So, different types of advertising have been as containing information and persuasion in varying proportions and varying in the degree of desirability. But for the firm, the intention is to sell its products, and it will present any information in a way which seeks to influence the consumer to purchase its products.Some consumption psychologists believe utility maximization by well-informed individuals plays a central role in conventional micro-economies. However, advertising can be a part of the conduct of firms in that firms use advertising amongst many other things to seek to increase profits or whatever their objectives it. Finally, advertising can be a part of performance, influenced by industrial structure. Some consumption psychologists also believe the highly differentiated products are more suitable for advertising than undifferentiated ones. They suppose existing firms benefit from their past investment in advertising and new entrants have to overcome those advantage.