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The pricing of any product is based less on the cost to produce the product and more on the market conditions, advertising and consumer "feelings". While I find about 90 percent of the ads on TV unappealing, I can appreciate that they are tapping the emotions of select audiences. I admit that I find so many ads just plain stupid, but maybe that's just me. I'm an internet shopper and read product reviews rather than succumb to ads. I think that is more and more the trend.
The Gillette ad taps the emotions, e.g. manliness of a select audience, so it is effective. Similarly, just look at all the ads for insurance companies, pharmaceuticals, automobiles, cell phones, sports gear, soft drinks, etc. They all appeal to some aspect of one's emotions rather than a critical assessment of the product itself. However, I don't know about those ads about "erectile disfunction" and such. Why are they even allowed?
At least the Old Milwaukee Swedish Bikini Team ads are no longer aired, but while they aired they were effective until public pressure stopped them...changing times. I admit to like watching them.
Oh but sex sells. Bring on the Super Bowl ads!