Question

For each of the following situations, decide whether advertising is directly informative about the product or simply an indirect signal of its quality. Explain your reasoning. a. Football great, Peyton Manning, drives a Buick in a TV commercial and claims that he prefers it to any other car. b. A Craigslist ad states, "For sale: 1999 Honda Civic, 160,000 miles, new transmission." c. McDonald's spends millions of dollars on an advertising campaign that proclaims: "I'm lovin' it." d. Subway advertises one of its sandwiches by claiming that it contains 6 grams of fat and fewer than 300 calories.

Short answer

Explain your reasoning. Answer: The Peyton Manning Buick Commercial uses an indirect signal of product quality. By featuring a well-known and successful athlete positively endorsing the car, the advertisement aims to build trust and convince consumers that the product is of high quality.

Step-by-step solution

a. Peyton Manning Buick Commercial

In this advertisement, football great Peyton Manning drives a Buick and claims he prefers it to any other car. This is an example of an indirect signal of product quality. By featuring a well-known and successful athlete positively endorsing the car, the advertisement aims to build trust and convince consumers that the product is of high quality.

b. Craigslist Honda Civic Ad

In this Craigslist ad, the advertisement states various information about the car, including "1999 Honda Civic, 160,000 miles, new transmission." This straightforward information about the car makes the advertisement directly informative about the product.

c. McDonald's "I'm Lovin' It" Campaign

The McDonald's advertising campaign featuring the tagline "I'm lovin' it" serves as an indirect signal of product quality. It does not provide specific information about the products offered by McDonald's, but the catchy slogan and large amount of money spent on the campaign serve as an indirect way of communicating quality in the consumers' eyes.

d. Subway Sandwich Fat and Calorie Information

In this Subway advertisement, the claim that the sandwich has 6 grams of fat and fewer than 300 calories is directly informative about the product. By providing specific nutritional information about the sandwich, the advertisement is giving potential customers concrete and useful details about the product.