Share This Article:

Economic Definition of advertising. Defined.

Offline Version: PDF

Term advertising Definition: Information provided about a product by a company to promote or maintain sales, revenue, and or profit. Advertising is often an explicit method of signalling that sellers use to provide information to buyers. The primary objective of advertising from the sellers perspective is to increase (or at least maintain) demand for a product. To accomplish this objective advertising provides buyers with two important types of information -- prices and product quality.

 

« adverse selection | Federal Reserve System advisory councils »

Permalink: https://glossary.econguru.com/economic-term/advertising

Alphabetical Reference to Over 2,000 Economic Terms