According to Chamberlin, ” Selling cost are those costs which are incurred in order to alter the position or shape of the demand curve for a product.”
Generally, following expenses are included in selling cost :
- Advertisement through newspapers, journals, radio, television, cinema, posters, etc.
- Expenditure on showrooms, show-windows, exhibition, etc.
- Salaries of salesmen.
- Expenses on sales department.
- Expenditure on samples.
- Expenditure on commissions and other facilities.
Selling costs have a very significant place in a monopolistic competition market.
Firms generally use two types of advertisements to attract customers :
- Informative advertisement
- Manipulative or Competitive advertisement.
