Advertising definitely affects those who don't do a lot of hands-on shopping. "If everyone is saying Mathews is best, then I can't go that wrong by getting one." Peer pressure is also a big factor. The shop where I shoot my winter league, sells Mathews and 8 out 10 people in the league are using Mathews bows (100 guys in the league). I'm one of the few exceptions.

Although Mathews has a large advertising budget, they also have some advantages that size will give you. They probably purchase parts by the million, not by the thousand. I have no doubt that they get the best deals from part suppliers and pay less per ad than other companies. A large company can also have some advantage with some manufacturing methods, being more efficient.

Could their bows be lower priced? ...probably, but they don't need to be.