Trek president John Burke after cutting ties between his com

Trek president, John Burke, after cutting ties between his company and Armstrong following proof Armstrong had cheated, told a reporter that “I think that what Lance did was he got a lot of people in America riding bikes,” Burke said. “That’s his legacy. Trek’s business went up because of that. And so did everybody else’s.” Burke’s comments reflect what economic aspect of the impact of advertising?

Solution

The economic impact of advertising which was reflected in his comments is that Advertising has an impact on the consumer demand by forming an image that the product is used by celebrities and that creates an impression in consumers mind such that they also like to use the same product thus driving up the demand.

Advertising also helps increase awareness of the consumer towards the product thus increasing its value in the minds of the customer and its subsequent demand.