by Bob Schmidt

Created on: October 29, 2009

How deceptive advertising hurts businesses is not hard to imagine. The disappointment that results when a promotional offer is not what it seems to be can spoil future possible relationships. Advertising gurus do a disservice to their clients when advertised special offers cross the line into areas that seem to be deceptive.

The Fine Print...

Special disclaimers about who qualifies for a special offer are often included within the fine print of may advertisements. When people respond enthusiastically to advertised specials only to find out that they do not qualify for the special, the negative impact can be greater than the value of new customers attracted by the special offer.

Anytime that expectations are elevated by aggressive advertisements, disappointment is sure to follow for those who do not qualify by terms disclosed in the fine print. In addition, that disappointment is not necessarily limited to the individual company that is guilty of deceptive advertisements, it can sour public opinion on the entire industry represented by such ads.

Bait and Switch...

Advertising low price leader products has long been a favorite of the automobile retailers. When businesses offer a "price buster" special with the intent to switch customers to more profitable products, bargain hunters will often become angry when the special price product is no longer available. Instead of adding happy customers to their customer base, businesses may lose far more future business than they add temporarily. A bad reputation is a costly exchange for a few quick profit dollars.

Soiling the Backyard...

Another result of deceptive advertising is the concept of soiling one's own backyard. All businesses must turn a net profit for survival. If continual promotional advertising tries to deceive customers into thinking that they can always sell their products for less than market value, they eventually destroy the profitability of their own business. Discount furniture businesses are a good example of a business group that has soiled it's own backyard with claims of always selling furniture for less than half price. Their credibility with this claim is nil.

Summary...

Deceptive advertising is never a good idea, but is a fact of life in the advertising industry. The negative impact seems to be ignored by businesses who continue the practice. They apparently don't realize that consumers are better informed than ever before with access to information via the Internet. As they continue to count on consumer ignorance, they actually compound the damage done to their own business interests.

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