Advertising either directly or indirectly attracts people's attention to a service or product, which much of the time they don't need.
Advertising effects peoples buying habits. It also effects peoples watching TV or movies habits. I dont know if it effects their behavior.
Well, psychologically speaking, advertising are just psychological technique for a product to gain some sales, but aside from that, nothing more nothing less... It just make the people waste money on some products that was endorsed by their favorite celebs, but in reality the product is nit good and in the end they tend to just waste it. I agree with SoundNfury bout that... Great example for this are trailers for movies, if you will watch a trailer, most of the scenes came from the best parts of the movie, but when your already watching it...
In a lot of ways. Take this two part video for example: http://www.youtube.com/watch?v=omrSZQ4Y4XU
There are many methods advertisers use to attract our business. The more successful are subtle to the point of us not seeing them. Try watching your favorite movies and TV for product placement. Then go around your house and see how many of the products shown, you've purchased. Most people who do this have their mind blown.
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