Question

Define or Explain the Selling Cost.

Explain Selling Costs.

Answer 1

Selling cost refers to the expenditure incurred to increase sale of the product. It is expenditure on advertisement in newspaper, T.V. , Radio, Internet, Mobile, Salary of Salesman etc. It’s aim is to increase sale. It is the feature of monopolistic competition.

Answer 2

Selling costs are the expenses a firm incurs on activities like advertising, publicity, and sales promotion with the aim of increasing the demand for its product. These costs are used to influence consumer preferences and attract buyers by promoting the product rather than improving its actual quality. According to economist Chamberlin, selling costs are those expenditures made to adjust or shape consumer demand to suit the product. Such costs are relevant only in real-world markets where competition and product differentiation exist. If consumers already have full knowledge of product prices and quality, these costs would be unnecessary.