Identificity Effect: The Inceptency Effect And John Kenneth Galbraith

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Does advertising create artificial wants? Your answer should discuss John Kenneth Galbraith’s “dependence effect” and F.A. Hayek’s response. Advertising is a way of promoting products and services. Advertisements inform consumers about new products and at the same time try to get their attention and sell the products. Advertising makes it easier for new products to enter the market and encourages market competition. Galbraith goes against the view that the consumer is the sovereign. He argues that salesmanship and advertising are creating people’s wants and desires. Galbraith argues that there is a difference between what the individual originally wants and what wants are artificially forced on him. In the process of producing to fulfill the…show more content…
If wants are forced to the man, it means that they are not urgent. Most importantly these wants should not be created by the production process, which is meant to satisfy them. Taking in consideration that the production process is creating wants; the justification that there is an urgency of production because of the urgency of wants is no longer valid. We do not have an urgency to produce; we need to control the production process in order to control our wants. According to Galbraith: ‘Production only fills a void that it has itself created.” He states that while producing more goods and services we are creating more wants. This is according to him the dependence effect. Advertising and salesmanship create the link between producing and the want creation process. They create in our minds a desire that did not exist. There is certainly an exaggeration of the effect of advertising. Just because we see an ad we do not have the urge to run and buy the product. If I never valued that I might need a new phone, seeing the ad will not create effect on me. I might appreciate the ad and the new product, but certainly wouldn’t go and buy it thanks to the marketing and advertising skills of the…show more content…
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