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Advertising Techniques

Advertising Techniques. Learning Goal. After today, you will be able to identify advertising techniques used on consumers. Deceptive Advertising. Advertising that is likely to mislead consumers through false statements, omitted information, or other unfair means. It is illegal

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Advertising Techniques

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  1. Advertising Techniques

  2. Learning Goal After today, you will be able to identify advertising techniques used on consumers.

  3. Deceptive Advertising • Advertising that is likely to mislead consumers through false statements, omitted information, or other unfair means. • It is illegal • The Federal Trade Commission can stop it

  4. Bait and Switch • A retailer advertises a product that it has no intention of selling, hoping to persuade customers to buy another at a higher price. • Ex: “25-inch color TV! Only $99” In all reality there is no such item or it is Sold Out, this is the Bait and the customer is steered toward a more expensive item.

  5. False Promise of a Free Gift • When a store advertises a “free” gift, the gift must actually be free, with no strings attached. • If customers must purchase something they use phrasing such as “gift with purchase.”

  6. Deceptive Pricing • Advertising a “sale” price that is actually no better than the product’s everyday price. • If business claims that its prices are lower than a competitor, it must show proof.

  7. Hidden Catches • Extra fees • Hidden restrictions • Surcharges • Ex: If an ad for low-cost “spring break” airline tickets involves processing fees, and restrictions in order to take advantage of the deal it must clearly disclose the details.

  8. Fraud • The deceitful conduct designed to manipulate another person for some gain. • Lying • Repeating something that ought to have been known to be false • Concealing a fact that might have saved the other party from being cheated

  9. Types of Fraud • Pyramid Schemes • Get rich quick plains • Chain Letters • Message sent to a number of people through the mail with instructions to send money with a promise that the participants will receive money in return

  10. Beware of Fraud • Sweepstakes • Earn money at home • Winning bidder in online auctions

  11. Warning Signs of Fraud • No address • High pressure sales tactics • Sounds too good to be true • Pay up front

  12. Reporting Fraud or Deceptive advertising • Report to the Federal Trade Commission • Contact the Better Business Bureau

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