1. Misleading Marketing Dr. Satyendra Singh
Professor, Marketing and International Business
University of Winnipeg, CANADA

2. Misleading Marketing Negligent Consumer
Blame Game
Misleading Marketing Negligent Consumer 2

3. Misleading Marketing! 3

4. Product Misuse i.e., Negligent Consumer Behavior?!4

5. Both at fault! So, we can recall products or issue refunds5

6. But, we cannot recall negligent consumers
if Injuries result from misuse of a safe product (and NOT from product defects).
So, the most dangerous component is the consumer  no way to recall them
In which case, marketers may be right! 6

7. But consumers may not be negligent, if
↓ Literacy, ↓ Education
Neither compulsory nor readily available
↓ Access to legal remedies  Better Business Bureau
Unaware of legal rights
Rural communities
↓ Freedom of expression
↓ Access to media
So, we need to judge veracity of marketing claims 7

8. Usually, marketers make 3 kinds of claims
① Search Claims
② Experience Claims
③ Credence Claims 8

9. ① Search Claim: Brand X margarine comes in a convenient plastic tub9

10. 10

11. What you ordered
What you received # 11

12. ② Experience Claim: Brand Y margarine tastes like butter12

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15. 15

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17. ③ Credence Claim: Brand X margarine contains
Cholesterol 17

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26. Problem is with the implied claim
Literal claim
Most of us agree on its direct interpretation
Implied claim
Different people may interpret differently 26

27. For example, people may think:
Brand X is the only margarine with 0% cholesterol
Brand X is a suitable food for those concerned about heart disease
Brand X is better than butter for those concerned about heart disease 27

28. How to classify a claim? n-% theory
what proportion of the audience must draw a false inference before the advertisement may be classified as misleading.
No for USA = 15-25% ??
Middle East = ??
Africa = ??
Emerging Markets = ?? 28

29. How to evaluate a claim? Credibility
Prominence of advertiser e.g. TV, Network
Magazine of ↑ circulation
Verifiability
Could the claim be evaluated within a month of purchase 29

30. Schechter’s Approach to Evaluating Claims
Misleading, if n = ?? HI
n > 50%
n > 25% standard
Verifiability
n > 25% standard
n > 5% LO
LO Credibility HI 30

31. But, how serious is the injury if misled?31

32. Seriousness of injury for being misled could be substantial
Average cost of deliveries (US$)
Seriousness of injury for being misled could be substantial
Figures from 2013 insurance company payments (not billed charges)

33. Caesarean section rates32