1. Deceptive advertising
(a) Personal experience
(i) False pricing
I went to buy a pair of shows at Macy’s sometime in 2014. The company had indicated on its website that the shoes were discounted at 60 percent off the original price. The shoes cost me $29.99.
(ii) Misleading benefits
A few years ago, I purchased Activia yoghurt because one of the benefits listed was that it would boost my immune system. The company selling the brand made a claim that the yoghurt was scientifically and clinically proven to boost the immune system of those who used it.
(iii) Non-substitution of claims made
I ordered three pizzas so that we could party at home with my friends. The ad said that if you order 3 pizzas, you get the third one free of charge. However,
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In this case, the prices of most products were found to have been inflated by about 50 percent. I would have chosen to highlight the significance of the shoe rather than lie on the price if I was a marketer.
(ii) Misleading benefits
A class action lawsuit was brought against the company in 2010 by a group of consumers. The judge found that the claims were unproven, hence the company was ordered to remove the description “scientifically” and “clinically” proven from their package and lower the price accordingly. I would have preferred to focus on the existing benefits, lower the price, and aggressively advertise to boost sales rather than point to a misleading benefit and inflate the price.
(iii) Non-substitution of claims made
I reckon that it was misleading because if the offer had expired, it should have been pulled down from the website. I decided to call the sales executive of the company, who apparently defended the delivery man.
2. Critical
Logos in the advertising shows that it is impossible for someone to have used the product and not benefit from it. The argument is that anyone can use this product and gain the same results. Try it for sixty days risk free.
Bed, Bath and Beyond (BBBY) currently has $400 million more in cash than they need for ongoing growth and operations requirements. While the company is financially sound analysts and investors worry about the company’s capital structure decisions. Investors do not want to see that much cash on the books and worry that the current capital structure is not the most effective for the future. They prefer that BBBY change their capital structure by paying out excess cash and issuing debt. This could allow BBBY to improve their return on equity and raise earnings per share. Given the low interest rates available it seems like the perfect time for BBBY to add debt to its capital structure. Until now they
Additionally, as expressed by Rebecca Ratner, Hsieh’s commitment to merging the workplace with social lives could present risk to the company in the form of unprofessional or inappropriate conduct that is not addressed properly.
The shoe market is completely governed by competition. There are no monopolies or any other rules defining the pricing here.
In addition, don’t believe every advertisement. Designed to peak the interests of a targeted group, advertisements make consumers spend money. In other words, one receives a false perception of the item or event advertised. Every year in Maine, the exceedingly promoted Lobster Festival takes place. Sponsors of this event speak, glamorously, about a Main Eating Tent where one pays “ around $12.00 [for a plate]…”
Founded by J.W. Nordstrom in 1880 as a small shoe store, by 1995 Nordstrom had become a giant retailer with net earnings of $203 million and over 35,000 employees. Nordstrom remains a family operation to date. The idea of the ‘Nordstrom Way’ - with strong commitment to the firm, emphasis on proactive service, no external hiring, and a decentralized management structure (e.g., Nordstrom has no CEO) - is central to their employee relations, and is seen as central to their success. Average compensation within the company is above industry average.
detriment,”* Deception involves (1) materially false advertising (materially false, i.e., there is a claim-fact discrepancy—not the case here) or (2) misleading advertising, whereby false subjective consumer impressions or perceptions are created—possibly the case here. Consumer research could be used to determine whether a significant number of buyers are fooled or whether they merely suspend their disbelief willingly. If consumers are fooled, the comparative claim is unethical since it misleads them. If people willingly suspend their disbelief; then no deception is involved and making a comparative claim does not violate any ethical standard.
The value of shoes can also decrease by of times it’s been worn or how bad the wear and tear must be if someone decides to resell them. Today the Yeezy Boost 350 V2 Beluga are worth almost 1,000 dollars. How can that be the case if the shoes have been out for a while now, the value of the shoe should have decreased. That is 4 times the original price of the sneakers. This could be because the limited number of sneakers manufactory are making. According to Jed Stiller, “part of how they drive their brand is to create things that have a lot more demand than supply and that means big premiums for those who resell their brand-new, unworn shoes, known as “deadstock” in the secondary market.” Back in October when the Yeezy Boost 350 V2 Beluga came out only a set number of individuals were able to purchase the shoes that day. The individuals who were able to purchase the sneakers that day and two big factors supply and money. Individuals who go and resell the shoes online now that the sneakers are limited and can place the shoes at whatever number they please because other people may still want them once they have time and money to purchase them from a private
By paying out excess cash and issuing debt, BBBY could improve return to equity holders and raise earnings per share (by a share repurchase).
➢ Has to do what: To decide to either confront Gilman and change what she perceives as sexist and/or racist practices or to leave the company
Macy’s, Inc. is a department store company that currently operates over 800 stores under the names of Macy’s, Bloomingdale’s, Bloomingdale’s Outlet, and their newest acquisition Bluemercury, which offers luxury beauty products and spa services. All but one of its stores are located in the United States, Guam, and Puerto Rico. Additionally, Macy’s sells its merchandise via their websites and mobile applications. According to their 2014 annual report, Macy’s had sales of $28.1 billion last year.
While health foods stores attract consumers to purchase health supplements, many manufacturers use health food stores to promote their bogus products. In March 1999, the FTC filed a complaint in federal court against the makers of Vitamin O. The company ran false ads claiming the Vitamin O supplement prevents cancer, heart, and lung disease by adding an extra oxygen supplement to the bloodstream. With no scientific evidence to prove the benefits of Vitamin O, the two companies from Washington agreed to a settlement of $375,000 for consumer compensation. The settlement prohibited the Vitamin O manufacturers from making claims that were unsupported about the Vitamin O health benefits. Testimonials and endorsements of product represented through previous experience from members of the public who used the product were also prohibited in the settlement. In conclusion, marketing agents with false science beliefs have one common goal: To sell! We as consumers must be aware and informed of unknown supplements that claims to have a great deal of impact to your life. These products are known for its testimonials by doctors and actors that make claims of using the product. Pseudoscience supplements have caused serious illnesses and even death due to consumers lack of knowledge when purchasing these products. It is strongly recommended that consumers research the companies and the product that advertise false products very carefully before purchasing a supplement that claims to
Nike uses a price skimming technique for some of their sneakers like the ‘Air Max’. They set up the sneakers at a high price only to lower the price as time goes by. New
You wait outside all night to go get the new Nike Air Jordans. The doors open and you dash inside to get the new shoes. You won't believe your eyes!! They are $200!! You look across the street and in the display case of a store, you see another pair of Air Jordans, except they aren’t Nike. Their only $40, but, they are missing the Nike symbol on the side of the shoe. What are you going to do? Shoes can be way too expensive and not worth the price. Expensive shoes can be bad quality, cause injury, and can be dangerous!
Human growth hormone, a substance produced in the human body, is now being sold over the Internet. Companies are marketing the product as an anti-aging product. At the web-site, http://www.awakenhgh.com, the company claims that there is a possibility that one can "stop the aging process." On the home page, they claim that the product can reduce fat and cellulite, increase energy and muscle tone, elevate mood, improve sexual performance and sleep, remove wrinkles, balance cholesterol, re-grow and re-color hair, and more. The product is a dietary oral spray that they claim contains a product that is "identical to the growth hormone manufactured in the human body" and is designed for oral consumption. They also