Abstract

Population of India and China consist of 37 percent of the world. The rise in their economic growth creates more potential consumers through excessive advertising – making a person buy things (products) they don’t desire – which to some extent creates skepticism about its credibility. It even makes the consumer skeptic about the valuable information in the message advertised (Calfee & Ringold, 1994). In this article we will investigate the element of skepticism of consumer in advertising in the light of the economics of information (EOI). Based upon the results obtained, through the survey of Chinese and Indian consumers, it can be interpreted that the economical, social, moral as well as personal usefulness and the regulatory aspects of advertising are taken into account. The results of this study would shoulder to determine the scope of advertising in China and India, and will draw the attention of policy makers on consumers’ skeptic behavior in advertising.

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