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Yes. Nostalgia appeals to the adult generation, and they have the buying power. There is no one adult who doesn't miss something from there childhood/past so invoking the memory of these things to promote sales makes advertising sense.
Yes, I believe that it does. Reminiscing the past has the same effect as dreaming big for the future---they are opposite ends of the spectrum, therefore just as powerful at evoking a response to the advertisement.
Defiantly. Nostalgia is the most emotional ad tool even in modern day advertising. It's like salt in the chilly and vice versa.
There could be. I think it should mainly to provoking sales!