Monopolistic Competition: End of Chapter Problem

Wrigley's spends around $$30$ million per year on intense, over$-$the$-$top commercials that claim to showcase what it feels like to chew $5^{}$ Gum, which is Wrigley$$s second most popular gum brand. Despite claiming, in a tongue$-$in$-$cheek way, to provide information about the gum to viewers, it is obvious that very little information is embedded in the high$-$concept, visually stimulating commercials.

So what is the point of the advertising?

This kind of advertising differentiates $5^{}$ Gum from other brands. The eye$-$catching visuals will help the product stand out from others on store shelves when consumers are deciding which brand of gum to buy.

The advertisement is pointless. Wrigley is simply buying up advertising space so that it is more difficult and expensive for competitors to advertise their products.

The advertisement is informative. Even non$-$serious information about the gum may be sufficient to appeal to consumers' sense of style or demonstrate what kinds of people allegedly buy $5^{}$ Gum.