...Chapter I THE PROBLEM AND ITS BACKGROUND Introduction Advertising, usually a paid announcement, of products for sale, in televisions, magazines, newspapers, radio , etc. It is the act of,persuading or calling the attention of the public regarding the product. Commercial ads seeks to generate increased consumption of their products or services through “branding”, which involves associating a product name or image with a certaing qualities on the minds of the consumers. Advertising is well related to marketing in a way that in marketing mix’s four P’s (Products, Price, Place and Promotion) , advertising is found under promotion. Background of the Study Television advertising focuses on two main task : creating a television advertisement that meets broadcast standards and then, placing the advertisement on television via a targeted air time media buy that reaches the desired customer. Asia Brewery, Inc. was established by Lucio Tan, Sr. in January 27, 1982 with the inauguration of its brewery in Cabuyao, Laguna and the launch of its first brand, Beer Hausen Pale Pilsen. This was followed by Manila Beer in 1985 and Beer Pale Pilsen in 1988. Beer Pale Pilsen (now, Beer Na Beer) was launched with much controversy The company currently brews Colt 45, Coors Original and Coors Light under license and distributes Asahi Super Dry. Theoretical Framework The Theoretical Framework contemplated for the Study are The Hidden Message Theory, Imitative Desire...
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...Monday, the Supreme Court declined to hear Pizza Hut's argument that the claim should be considered false advertising. The court, without comment, turned down an appeal by Pizza Hut, which won — and then lost — a false-advertising lawsuit against Papa John's. Pizza Hut said it should not have to prove that its rival's ads actually affected people's choices on what pizza to buy. Papa John's officials expressed relief that the case had concluded. "We obviously feel vindicated in this," said Karen Sherman, spokeswoman for the Louisville-based Papa John's. "This battle is over now." Pizza Hut president Mike Rawlings said, "No advertiser has ever been able to defend a campaign that is deceptive on the basis that the public doesn't care. We are disappointed the court did not seize this opportunity to clarify this matter for the benefit of consumers and responsible advertisers alike." Pizza Hut is the nation's largest pizza chain, and Papa John's is the third-largest. In 1995, Papa John's adopted a new slogan: "Better ingredients. Better pizza," and later it started a major national advertising campaign using the slogan. One of the ads boasted that Papa John's "won big time" in taste tests against Pizza Hut. Other ads said its sauce and dough were better than Pizza Hut's because they were made with fresh tomatoes and filtered water. Pizza Hut filed a federal false-advertising lawsuit against Papa John's in Dallas in 1998, saying scientific evidence showed that Papa John's...
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...Research examples of advertising that could be considered deceptive or otherwise objectionable. Based on your research write a 700-word APA style paper. Advertising is the nonpersonal communication of information usually paid for and usually persuasive in nature about products, services or ideas by identified sponsors through the various media."(Bovee, 1992, p. 7). Consumers are greatly influenced by countless advertisements urging them to purchase products that they may or may not need or want. While many of these advertisements honestly inform and educate consumers, some are false, deceptive, and even illegal. An advertisement is considered deceptive if there is a "representation, omission, or practice that is likely to mislead the consumer". The advertisement does not necessarily have to cause actual deception, but, according to the Federal Trade Commission (FTC), the act need only likely mislead the consumer (Federal Trade Commission, 1998 [on-line]). Advertising that makes false claims or misleading statements, as well as advertising that creates a false impression. If retailers systematically advertise merchandise at low prices to get customers into their store and then fail to have the merchandise, they are guilty of deceptive advertising. Deceptive practices can take many other forms as well, such as false promises, unsubstantiated claims, incomplete descriptions, false testimonials or comparisons, small-print qualifications of advertisements, partial disclosure,...
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...degree heat. Explain if this fact has any bearing on whether or not the dealer must perform in accordance with the published advertisement. Introduction: Bait-and-switch is a form of fraud, most commonly used in retail sales and car dealership but also applicable to other contexts. First, customers are "baited" by advertising for a product or service at a low price; second, the customers discover that the advertised good is not available and are "switched" to a costlier product. The fact that Betty drove three hours in one hundred degree weather has no bearing on whether the dealer must perform in accordance with the published advertisement. Advertisements are not offers. In every advertisement by marketing firms, certain vital terms and conditions may not be very clear and certain. Common examples of these factors are pricing conditions and quantity. The law in advertising calls these invitations to treat; basically these are invitations from the company or the advertising firm to the general public to make an offer on a particular item or items at a given period of time. However no statement or illustration of any form of advertisement should be use to creates a false impression of the grade, quality, make, value, currency of model, size, color, usability, or origin of the product offered, or which may otherwise misrepresent the product in such a manner that later, on disclosure of the true facts, the purchaser may be switched from the advertised product to another. (http://www...
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...practices. In 1938, Congress passed a broad prohibition against unfair and deceptive acts or practices. Since then, the Commission also has been directed to administer a wide variety of other consumer protection laws, including the Telemarketing Sales Rule, the Pay-Per-Call Rule and the Equal Credit. The FTC pursues vigorous and effective law enforcement; advances consumers’ interests by sharing its expertise with federal and state legislatures and U.S. and international government agencies; develops policy and research tools through hearings, workshops, and conferences; and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies. Bait and switch advertising is a violation of consumer laws. It is a type of fraudulent business practice where one party, such as a manufacturer or business, will offer the "bait". This could be a product that is advertised at a very low cost and is designed to lure in a customer. Once the customer is attracted, the manufacturer will pull the "switch". The proposed product will no longer be available at the advertised price, but instead it will be offered at a much higher price or an altogether different product will be offered. The purpose of the bait and switch is to convince the consumer to pay much more money than was originally planned. The idea is that the seller has already drawn the customer in with the bait and will now be free to switch the product without...
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...Student Name Ethics in Information Technology Deceptive Advertising Deceptive Advertising Marketers spend lots of time in designing advertisements. As part of this process, they are required to make ethical choices. The advertisements consists the choices. Telling the truth in advertisement is a pretty ethical standard. However, like we are aware in todays world, there is pure truth and there is useful truth. Mostly we will see or notice useful truth on advertisement instead of pure truth. Marketers make unethical decisions when creating deceptive advertisements. That creates huge impact on customers and their experiences with the company. Moreover, there is an impact with the companies creating deceptive advertisements as well, such as either growing customer inquiries or legal issues with government regulations. Deceptive advertising is a global ethical issue. Several airline companies in United States have faced huge fines from Department of Transportation in regards to deceptive advertising. One of the airlines was Southwest. Southwest airlines have been charged for deceptive advertising for numerous times. Most recent was in early 2014, the company paid $200,000 for advertising inaccurate information on the air. Moreover, they were charged additional $100,000 for being repeated offender. Department of Transportation stays proactive and monitors the information that companies put out there for customers. Anthony Foxx, US transportation secretary stated that consumer...
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...LEG 500 | Bait and Switch | Law, Ethics & Corp. Governance | Bait and Switch 1. Betty drove three hours in one-hundred degree heat. Explain if this fact has any bearing on whether or not the dealer must perform in accordance with the published advertisement. Betty driving for three hours in 100 degree weather has nothing to do with whether the dealer should perform in accordance with the published advertisement or not. According to Section 87(2) of the Restatement (second) states that “an offer which the offeror should reasonably expect to induce action or forbearance of a substantial character on the part of the offeree before acceptance and which does induce such action or forbearance is binding as an option contract to the extent necessary to avoid injustice” (University of California (CSUN), 2011). The dealership cannot be held liable for any hardships that a potential customer endure before they even reach the dealership. Tony did not promise to have or sell the advertised vehicle to Betty when he spoke to her. According to the video, the only item discussed during the phone conversation was the trade-in value of Betty’s truck and no surroundings circumstances. Since there were no promises made in the phone discussion the hardship that Betty endured was done so on her own free will and therefore not Tony’s responsibility. 2. When Tony said over the phone “three thousand dollars firm,” explain whether or not he was making an offer that, if accepted...
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...Advertising has a great effect on the behaviour of consumers. Basically, the function of advertisements is to make consumers want the products and services advertised. They tell consumers what to eat, how to dress, where to travel, where to shop, how to look, how to feel better, and in other respects as well. In trying to change consumer behaviour, all advertisements aim to increase the volume of sales of their respective products and services. Since they affect consumer behaviour profoundly, consumers who are not careful will be tempted to buy and try out products which come with all sorts of claims. How advertisements influence consumers? Some advertisements are useful, for example, those that tell consumers about new goods and services or those that provide useful information about the things advertised. The main purpose of advertisements however, is to sell to consumers. While advertisements can be helpful, they can also be misleading and confusing. Certain advertisements mislead by not tell consumers much about the product or service. In a few cases, advertisements are deceptive. Others try and make the consumer buy things they do not really need or want. Many advertisements play with your feelings, rather than give useful factual information. For example, advertisements try to convince women that products and services can enhance their looks and make them slim and beautiful, in addition to making them fair and youthful. False and misleading advertisements ...
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...Running head: Bait and Switch Advertising and Communication Law: Bait and Switch Karen Kinnaird Professor Mark Glantz Law, Ethics, and Corporate Governance Business Law 500 November 27, 2011 Abstract Bait and Switch advertising is a type of fraud and is a violation of consumer laws. This form of business practice is an attempt to lure or bait a potential customer into a business. However, once the customer is about to take the bite, the business will pull a “switch” and make the product no longer available at that price or have a different product they are trying to “unload”. Advertising and Communication Law: Bait and Switch The Federal Trade Commission has defined bait advertising (includes any form of public notice however disseminated or utilized) as “an alluring but insincere offer to sell a product or service which the advertiser in truth does not intend or want to sell. Its purpose is to switch consumers from buying the advertised merchandise, in order to sell something else, usually at a higher price or on a basis more advantageous to the advertiser. The primary aim of a bait advertisement is to obtain leads as to persons interested in buying merchandise of the type so advertised” (Guides Against Bait Advertising). Advertisements An advertisement or ads is defined by dictionary.com as a paid announcement, as of goods for sale, in newspapers, magazines, radio, television (Dictionary, 2010) and now the internet which some call a “digital centric landscape”...
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...Bait and Switch Strayer University Leg 500: Law Ethics and Corporate Governance December 5, 2010 Abstract This paper will cover bait and switch advertising techniques employed at Rally Motors. We will examine how consumers can seek relief via the Lanham Act and the U.S. Federal Trade Commission for false and misleading advertisements. We will discuss the unethical behavior exuded by Mr. Tony Sulka, the salesman at Rally Motors, and how he promised Ms. Betty Algur $3000.00 for her trade in, and then attempted to back out of the offer, once Ms. Algur arrived at the dealership. We study how the Dealership’s advertisements and negotiation tactics bound them to their advertisement, and should have led to a firm contract for Ms. Algur. Betty Algur a consumer from Vacaville came into Rally motors because of an advertisement in the local newspaper that stated they were selling a pickup truck for $11399.00. She spoke to the sales man Mr. Tony Sulka before coming to the dealership, and he stated that they would give her $3,000.00 for her trade in vehicle. The fact that Betty drove three hours in 100 degree weather had no bearing on whether Rally Motors should have performed in accordance with their published advertisement. The dealership cannot be held liable for how far a customer travels to do business with an organization. It was Betty’s choice to drive to Rally Motors. A car dealer is not required to sell a person a car just because that person underwent some difficulty...
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...you need to pay attention to. According to a the website; “A nonprofit organization is a group that is organized for generating profit and in which no part of the organizations income is distributed to its members directors, or officers” (Cornell University Law School, 2014). This organization was a helpful charity that they wanted to show the community that people are out here to help out in any way. If Gerard promoted by advertising this event and explained to the community that this was to benefit the organization Kids Care then instead of giving the donations up, he decide to pocket all the cash. This is known as false advertisement to the community and to the organization that you have been helping promote the information for. In the state of Georgia, there are two codes that reflect the situation that Gerard is facing now. The first is Georgia Code§ 10-1-420; this code states that it prohibits the use of advertisements when the advertiser has no intent to follow the program. Lastly, you have Georgia Code § 10-1-421; this prohibits the use of false advertisement or fraudulent statements. Even with Gerard changing his mind, there are laws that he has...
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...Online Ethical Concerns of False information Ethical lapses and moral indiscretions can occur under the pressures in today’s marketplace to generate profits. In general, business people, students, customers know the difference between right and wrong! Ethics are related to matters of right and wrong or moral conduct pertaining to marketing communications. Central Issues of Ethics * Advocacy * Accuracy * Acquisitiveness Short-term manipulative arguments * Focusing on style of advertising * Targeting Kids, Teens and the Elderly * Long-term macro arguments * Focus on the social or environmental impact of advertising * Complete information * Deception * Absence of externalities * Social costs Deceptive Advertising * False Promises * Incomplete Description * Stating some but not all of the product’s contents * Solid oak furniture (only desktop solid) * Misleading Comparisons, visual distortions * False Testimonials, false demos * Partial Disclosures * Kraft cheese slices made with 5 oz. of milk but omit the processing loses about 2 oz. of the milk * Small-Print Qualifications * Bait and Switch Guidelines to Ethical Advertising * Truthful * Substantiate Claims * Refrain from False Comparisons * No bait! * Explicit guarantees * No false price claims * Competent witnesses * Tasteful and decent Arguments against advertising to children * Children...
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...Purpose: To persuade you to band false/negative advertisements Thesis Statement: You see false and negative advertisements multiple times a day Thread: Your getting cheated through false/negative advertisements unwillingly Introduction: You see advertisements over 3000 times a day. You don’t even ask to see these either. Advertising has come to a whole different level. It’s not just trying to advertise the product. They have come up with ways to scam you, give you false information and being negative. It is affecting society in so many negative ways. I think the false and negative advertisements have gone too far and should be banned. 1.What is false/negative advertisements? 1.Advertising is defined as the act or practice of calling public attention to one's product, service, need. a) There are laws to where all the information has to be correct or they could be sued 2. False Advertising a) Bait and Switch b) Number of Items sold to each person c) Best Price in town d) Tell you it’s a sale price when it’s a regular price e) Say they are going out of business f) First you must buy… 3. Negative a) portraying the advertisements in a negative way Your money 1. You could buy the product and it could not work a) it not have a warranty or returns 2. They could sell it more than what it should be a) it could be...
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...about how this right should be interpreted, especially since the advent of the Internet”(www.degreedirectory.org). Advertising and marketing are tools used to entice and attract customers to your product. Creative and massive marketing will usually peak the interest of individuals to have an interest in your product or service. Advertising is a form of communication used to persuade an audience (viewers, readers or listeners) to take some action with respect to products, ideas, or services. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common.(en.wikipedia.com) The car dealer should uphold the advertisement of the truck as listed in the paper. The newspaper ad was a ad targeted at individuals who may be interested in purchasing a affordable car. However, the advertisement does not promise the viewer that the truck advertised will be available upon arrival to the car dealer. According to the video, the paper had in small print that there is only one truck at the advertised price. The car dealer is not responsible for any hardships or unusual cirmcumstance that a customer may experience attempting to respond to the advertisement. Advertisement is used to attract customers, to make sales and to generate traffic to a business. Marketing and advertising is very effective if done well. 2. When Tony said over the phone "three thousand dollars firm," was...
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...BUSINESSES Ayub Mohamud Hussein Introduction Advertising is a powerful tool used by companies to inform, and persuade for their products/service to their customers to take some action, now or in the future and to shape consumers attitude and intentions and move them to the next level of buying process. It is the method used by companies for creating awareness of their products, as well as creating new products known to the new and potential consumers. Longe (2001) defined advertising as any personal paid form of non-personal communication which is directed to the consumers or target audiences through various media in order to present and promote a product, services or/and idea. The advertisement in media can be in the form of print such as newspaper, magazines, and billboards or broadcast such as radio and television. It consists of pictures, headlines, information about the product or service the company advertises. Businesses in Somalia, particularly businesses in Mogadishu do and invest a large portion of their budget on advertising, but misleading the customers’ mind become a common object that companies use nowadays; nevertheless, these companies ignore the consequence of this action to their performance as well as their image. This study focuses on the effect of misleading advertisement on business. Misleading Advertisement The American Marketing Association (AMA) defines misleading advertising as advertising intended to mislead consumers (1) by falsely making...
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