r/explainlikeimfive • u/bigdubsy • Dec 16 '12

ELI5: Why does Coca-cola still advertise? Explained

Why do companies that have seemingly maxed out on brand recognition still spend so much money on advertising? There is not a person watching TV who doesn't know about Pepsi/Coke. So it occurs to me that they cannot increase the awareness of their product or bring new customers to the product. Without creating new customers, isn't advertisement a waste of money?

I understand that they need to advertise new products, but oftentimes, it's not a new product featured in a TV commercial.

The big soda companies are the best example I can think of.

Edit: Answered. Thanks everyone!

Edit 2: Thanks again to everybody for the discussions! I learned alot more than I expected. If we weren't all strangers on the internet, I'd buy everyone a Pepsi.

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u/[deleted] Dec 16 '12

On blind taste tests, Pepsi wins out over Coke.

It depends on the amount. In blind taste tests with small amounts, Pepsi wins, due to the extra sweetness. But blind taste tests with larger amounts cause people to prefer Coke, because they don't like the extra sweetness over a large quantity.

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u/[deleted] Dec 17 '12

Source?

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u/[deleted] Dec 17 '12

http://en.wikipedia.org/wiki/Blink_(book)

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u/[deleted] Dec 17 '12

Unfortunately I don't have a copy of the book on hand to verify your citation…

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u/[deleted] Dec 17 '12

We are discussing something on an internet forum, I'm not writing an academic paper. I don't need my citation verified. It's just a casual conversation.

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u/[deleted] Dec 17 '12

Perhaps, but claiming there's some information out there without any way to see it, is rather a fast way to dead-end a conversation.

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u/newpong Dec 17 '12

No, he provided his source. If anything, it's your lack of initiative that dead-ended things.

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u/[deleted] Dec 17 '12

My lack of initiative to bike down to the local library at midnight… break in… fight off the police… and read an entire book in hopes that something might exist in the book to describe what he is talking about.

Yeah.

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u/newpong Dec 17 '12

you're absolutely right because that's the only conceivable alternative. i apologize. hopefully I can master logic on reason on your level one day

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u/bubblybooble Dec 17 '12

Google: malcolm gladwell blink pdf OR mobi OR epub rar OR zip OR 7z

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u/[deleted] Dec 17 '12

Or, you know, you could just pirate the e-book and use ctrl-f to search for "pepsi".

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u/[deleted] Dec 17 '12

Well duh. You expect a source you can read? Just shut up and take his word for it. He's a fucking squire after all Mattie.

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u/[deleted] Dec 17 '12

It should be on the pirate bay in ebook form.