Advertising and price are two variables that interplay to affect the buying decisions of consumers. While advertising informs consumers of product existence and its features, the cost associated with it can not be overlooked. This cost results in higher unit price for the product thereby creating "artificial" product differentiation. Consumers, on the other hand, are price conscious when making their buying decisions, because the strive to attain maximum benefit from the purchased item at the least cost. This study has, however, shown that while it is true that product differentiation leads to price competition with respect to consumer products, advertising does not necessarily increases the price of consumer products.