Or the opposite: the amount of money a company makes per customer is inversely related to the marginal cost per product. Which, usually, negatively impacts product quality.
Another thing that influences that is economics of scale, and I fear that is what is more relevant, in this case: big players will drown out the small ones.
KFC is as expensive as a little mom & pop shop around the corner, but the quality is lower, yet the amount of advertising is higher.
I understand what you're trying to say, now, but when I look around me it does not apply. At all.
EDIT: PS: For the record: this is not about whether or not advertisement works, it's about the quality of advertised products versus non-advertised ones. Of course it works, as in, advertisement leads to more sales. But from a consumer point of view: do we end up consuming, on average, higher quality products in a world with advertising, compared to a world without?
Another thing that influences that is economics of scale, and I fear that is what is more relevant, in this case: big players will drown out the small ones.
KFC is as expensive as a little mom & pop shop around the corner, but the quality is lower, yet the amount of advertising is higher.
I understand what you're trying to say, now, but when I look around me it does not apply. At all.
EDIT: PS: For the record: this is not about whether or not advertisement works, it's about the quality of advertised products versus non-advertised ones. Of course it works, as in, advertisement leads to more sales. But from a consumer point of view: do we end up consuming, on average, higher quality products in a world with advertising, compared to a world without?