MKTG 477 1st Edition Lecture 23Outline of Last Lecture I. Budget effects (continued)II. FTCOutline of Current Lecture I. Determining deceptionII. Where FTC cases originate fromIII. Stouffers exampleCurrent LectureDetermining “deception” of the FTC (3 criteria)1. Misleadingnessa. “Are the beliefs/perceptions consumers hold as a result of seeing the ad different from reality?”i. Misrepresentations – statements contrary to factii. Omissions – qualifying information is not disclosed2. Reasonable consumera. “Are the individuals who hold these ‘false’ beliefs acting ‘reasonably’?” i. A “normal” (expected) reaction to the ad ii. By people from the target marketiii. A “notable” percentage of individuals (less than 5%)b. Keebler Cookiesi. “Baked by elves in hollow trees”ii. Target market = children, but parents buy them so they know it is just to get children’s attention3. Materiality – the importance (affects people)a. “Do the deceptive claims made in the ad affect/influence buyer behavior to the consumer’s detriment?”i. Is one of the reasons consumers consider buying the product due to their exposure to and beliefs about the “deceptive” claims made in the ad?Cases originate from- Unhappy consumers- Regular reviews done by lawyers- Competitors (most often)These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Stouffer’s – “Of all the things we make, we make sense!”1. People believe the product to be low in fat, calories, sodium, etc.a. Always less than 1 gram of sodium2. Most people will still believe it is low in sodium after viewing the ada. 1 gram = 1,000 mg. which is a lot3. Buying this product will make a difference when paying attention to health aspects of the advertisement a. Most people do not read the fine print which states information about
View Full Document