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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 229.55+0.2%Dec 5 9:30 AM EST

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To: Glenn D. Rudolph who wrote (4161)5/12/1998 1:22:00 PM
From: Walter High  Read Replies (2) of 164684
 
Glenn:

Regarding advertising and brand loyalty: I believe there is brand loyalty, especially when products can be differentiated. This is especially the case with products like Coke and Pepsi, McDonald's and Burger King. The reason these companies keep pouring large amounts into advertising is not so much to maintain loyalty, but to gain new customers.

Millions of customers die every year and millions more become new
consumers. The purpose of advertising is to gain the new customers' loyalty. Look at how Mountain Dew is pitched to young kids, and need I even mention cigarettes? It is generally acknowledged that the whole purpose of promoting cigarettes is to gain the loyalty of new smokers (even though the companies claim the opposite).

Walter High
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