Skip to Content

Can't fool a customer twice by falsely claiming quality

More
Text SizeAAA

Filed under: Ripoffs and Scams, Shopping

The term biasing cue refers to the marketer's tactic of dressing a product to imply high quality. Such branding often works once, but is it a viable long-term strategy? Not if the product fails to live up to its promise, according to a new study.

The "fool me once" study recently appearing in the Journal of Consumer Research concluded that companies can enjoy initial success by pushing elements that seem to elevate a product's quality, even if actually irrelevant.

Examples of bias cue advertising might include shampoo ingredients that do nothing (with placenta!), endorsements by media stars (as seen on Oprah), sponsorship of sports events, or advertising side-by-side with other upscale products in magazines such as Harper's. Even raising the price of an item sharply can serve as a biasing cue we infer as greater quality. These are common strategies for companies wishing to move its products to a higher price point.

Subscribe to Walletpop

Your Frugal Tips

dollar bill in sandwichBeing frugal is now hip, but many don't even know where to start. Share your best money-saving secrets here!

    AOL Safeguards

    Charles Feldman
    Charles Feldman Filed under: Home, Real Estate, Career, Recession

    Military service members get increase in allowance for housing

    While President Obama is preparing to send more military personnel to Afghanistan with the new year, for those servicemen and women who are remaining in the United States, the Department of Defense ...
    Gina Roberts-Grey
    Gina Roberts-Grey Filed under: Insurance, Insurance-home

    Better not pout, better not cry if homeowner's insurance covers holiday disasters

    You probably wouldn't send a holiday card depicting the family dog biting the boss. Or one that shows a brand new flat screen falling out of the back of your truck. While these scenes aren't ones ...
    Aaron Crowe
    Aaron Crowe Filed under: Saving Money, Shopping, Economizer

    When it's worth it to fix an old appliance vs. buying new

    It doesn't take a math whiz to figure out that spending $200 to repair a clothes dryer is a better deal than paying $375 for a new one. But the pluses and minuses can quickly clog your brain when ...
    Lita Epstein
    Lita Epstein Filed under: Credit, Credit Reports, Credit cards

    Got a bad credit deal? In 2011 you'll know why

    Have you been offered a bad credit deal by a lender but don't know why? Starting in January 2011, banks will have to tell you why and give you free access to your credit report any time you're given ...

    Headlines from WalletPop Partners

    Ideas for Setting a Memorable and Beautiful Dinner Table
    A dinner party is a perfect opportunity to show off your personal style, taste, and flair for ...
    Readers' Choice Awards for Best in Winter Travel
    Do you know of a cruise line that offers everything from beautiful accommodations to great dining, ...
    Learn More»