Consumer Behavior Predictably Irrational Chapter 12 Reflection PDF

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Consumer Behavior Predictably Irrational Chapter 12 Reflection...

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Maria Tyrina Predictably Irrational: Chapter 12 1. Share a story of when your trust was eroded by a company. Where do you stand with this company now? Going back to the time when Snapchat just started gaining popularity, the company claimed that the snaps you or anyone else send would disappear forever. Being kids/teenagers back then, most of us believed that it was true, although there were many simple ways to preserve the snaps. Later the FTC charged the company for misleading advertising. Unfortunately, many people blindly trusted Snapchat and sent pictures that they would probably never send if not for the disappearing function. Personally, I have never burned myself with that false claim, but definitely, my trust was eroded by Snapchat after the truth about the company came out. It is essential for companies to be trustworthy because, as Dan Ariely mentioned in the book, once customers trust is broken, it is really hard to restore it. The same happened to many people with Snapchat, including me. After the scandal, many users turned away from Snapchat, and the company’s reputation went downhill. Although they have tried to rebuild their reputation by modernizing the app and coming out with new updates and even lenses that users can create themselves, it is not the same as it was before. 2. Find and share an advertisement that is intentionally misleading. What is the reputation of this company and the reputation of its competitors? One of the ads that I could think of at the top of my head is the Red Bull “give you wings” tagline. Although it is common sense that one will not grow wings after having an energy drink, many people filed claims against Red Bull, and so the company was sued for their misleading ad and had to pay out around 13 million dollars. The reputation of Red Bull is still holding strong, although many competitors in the energy drink industry are growing bigger and getting more popular. Red Bull still has a good reputation because it is more than just an energy drink company, instead it has a vast share of its business in the media, sports, and sponsorship industries...