Final answer:
Comparative advertising typically includes the comparison of prices, features, quality, and customer reviews, and these aspects reflect the market structure in which firms operate. They influence consumer decisions by forming perceptions about value and quality.
Step-by-step explanation:
In comparative advertising, companies often focus on the following elements when comparing their products or services to those of competitors:
- Comparison of prices to demonstrate better value or cost-effectiveness.
- Comparison of features to showcase superior or additional benefits.
- Comparison of quality, with claims of higher standards, durability, or effectiveness.
- Comparison of customer reviews to establish trust through positive consumer feedback.
These comparisons are influenced by the type of market structure in which a firm operates. For instance, in perfect competition, price is often the primary focus due to the homogeneity of products, while in monopolistic competition and oligopoly, firms might compete more on features, advertising, and other product differences. The impact on consumer choice is significant, as these comparisons can guide consumers towards certain products, form perceptions about quality and value, and consequently affect their purchasing decisions.