Effect on Product-Quality: - Advertising promotes competition as well as every advertiser wants to succeed in this competition. Advertiser recognizes that for long term success in business and for effective rational advertising good quality production is must. For this advertisers transmit lot of resources on research and development-work to improve product quality.

Critics of advertising dispute that advertiser are selling inferior quality products by showing persuasive and untruthful advertisement. However this criticism is wrong as advertisers supplying inferior products can't be successful in long run.