🏫 Board💼 Business Studies

Marketing expenditure is a burden on

Q1 FREE PREVIEW

Marketing expenditure is a burden on

a

industry

b

businessmen

c

customers

d

all of these

✓ Correct answer: c)

customers

Explanation

Correct Answer: (C) customers

Explanation of the Correct Option:

Marketing expenditure is considered a burden on customers because the expenses incurred on advertising, packaging, promotion, transportation, branding, and sales activities are generally added to the cost of the product. As a result, customers ultimately pay a higher price while purchasing goods and services. Businesses recover their marketing costs by including them in the selling price of products. Therefore, it is said that marketing expenditure becomes a burden on customers.

However, marketing also provides many benefits to customers. It creates awareness about products, improves product quality, offers better services, and gives customers more choices in the market. Even though customers bear the cost indirectly, they also receive value and convenience through marketing activities.

Explanation of the Wrong Options:

(A) industry
This option is incorrect because industries spend money on marketing to increase sales and profits. Marketing helps industries expand their market and strengthen their brand image. Therefore, it cannot be considered only a burden on industries.

(B) businessmen
Although businessmen initially spend money on marketing activities, they usually recover these expenses through increased sales and by adding the cost to product prices. Hence, the final burden does not remain on businessmen alone.

(D) all of these
This option is incorrect because the major burden of marketing expenditure is ultimately transferred to customers through higher prices. Therefore, all of these cannot be the correct answer.

Conclusion:

Hence, marketing expenditure is mainly considered a burden on customers, because customers indirectly pay for marketing costs through the prices of products and services. Therefore, Option (C) is the correct answer.

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