This study was undertaken to verify whether advertising is a waste of resources? 150 customers were
randomly selected from Kathmandu Valley. The study revealed that more the advertising, more the
demand and profit. However, firms do not share additional profit by reducing the prices but spend it
further on advertising. They treat advertising expenditure as an investment and not the cost.
Advertisements multiply needs of people by increasing unhealthy competition and forcing buyers to
buy unnecessary products and promote artificial living, and at last it results in wasteful consumption
of goods and services. Advertisements misinterpret facts to the consumer, use flowery language, make
false comparisons and gives bogus testimonials to increase sale. Heavy advertisements create brand
preferences, restrict free competition, eliminate small firms and encourages mightiest than best.
Advertising create needless varieties and designs. It wastes natural, capital, and labour resources to a
large extent. It also wastes stationary, time and energy. The paper suggests that the need of separate
legislation governing advertising in Nepal.