Commercial Applications
A textile company produces cotton fabrics and sells them to wholesalers who distribute the goods to retailers across the country. The company also advertises its products to create brand awareness. What hindrance does advertising primarily aim to remove in this case?
- Hindrance of place
- Hindrance of knowledge
- Hindrance of finance
- Hindrance of risk
Commercial Orgs Intro
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Answer
Hindrance of knowledge
Reason — Advertising removes the hindrance of knowledge. Producers and merchants often find it difficult to sell goods because consumers are not aware of their existence, benefits and uses. Advertising and sales promotion remove this hindrance by bringing goods and services to the knowledge of consumers and persuading them to buy. The hindrance of place is removed by transport, finance by banking, and risk by insurance.
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