FTC v. Novartis: The Return of Corrective Advertising?

Mazis, Michael B.

doi:10.1509/jppm.20.1.114.17281

Cited by 21 publications

(25 citation statements)

References 11 publications

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“…Mazis (2001) showed that six months after the deceptive ads for Doan's (i.e. a backache pain reliever by Novartis) stopped, consumers still believed that Doan's had a substantially different effect on back pain than other analgesics.…”

Section: Deceptive Advertising and Consumersmentioning

confidence: 99%

“…Another study investigating the effects of the corrective advertising ordered in 1973 against Hawaiian Punch fruit drink found that the false beliefs declined steadily over a nine-year period following the fTC order (Kinnear et al 1983). Mazis (2001) has also asserted that an advertisement's memorability (or lack thereof) does not equate to lasting effects on consumers' beliefs.…”

Section: Deceptive Advertising and Consumersmentioning

confidence: 99%

“…According to robert Pitofsky, former chairman of the fTC, an advertiser will retain misappropriated market share until consumers are informed of the misinformation on which their decisions are based (Mazis 2001). It is within the fTC's powers to deny a company any further gains from the deceit (Wilkie et al 1984).…”

Section: Corrective Remedies By the Ftcmentioning

confidence: 99%

“…for example, in the case of listerine, more than 60% of consumers surveyed believed the false claims; the false ads had been running for over 50 years and the brand had more than 50% share of the mouthwash market. These circumstances were used against Warner-lambert (the maker of listerine) and led to the $10 million corrective advertising requirement (Wilkie et al 1984;Mazis 2001).…”

Section: Corrective Remedies By the Ftcmentioning

confidence: 99%

“…Perusal of the advertising literature reveals that prior studies regarding the effects of deceptive advertising have concentrated either on the consumers' attitude and belief changes or on the impact of negative publicity on companies (Tyebjee 1982;Gill & Grossbart 1985;Moutinho & Nisel 1989;Ahluwalia et al 2000;Koslow 2000;Mazis 2001;Tipton et al 2009;Yuksel & Myrteza 2009). Unlike prior studies, the present study treats the charges of deceptive advertising and resolution of the case as an event to measure the aggregate financial impact of such events, and uses an event study to calculate abnormal stock returns, which, according to the efficient-market hypotheses, provides an unbiased estimate of changes to future cash flow that can be attributed to a single event (fama 1970).…”

Section: Introductionmentioning

confidence: 99%

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Deceptive advertising and abnormal stock returns

Jeong

Yoo

2011

International Journal of Advertising

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This study examined the impact of deceptive advertising on the abnormal stock returns of firms. Using an event study analysis with 101 cases from the fTC database over the period 1987-2005, the fTC rulings on deceptive advertising were found to have the negative effects on the abnormal stock returns of firms. Among the firm-specific factors examined in this study, the amount of advertising expenditures played a role in alleviating the impact of deceptive advertising on the abnormal stock returns, and the firms charged with consent agreements alone were found to lose less firm value than those charged with additional actions by the fTC. results also showed that the negative effects on the abnormal stock returns created by the fTC actions did not quickly disappear afterwards. These results imply that marketing managers should exercise caution in designing advertising messages that may or may not intend to violate the fTC rules and regulations on deceptive advertising.

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Section: Deceptive Advertising and Consumersmentioning

confidence: 99%

Section: Deceptive Advertising and Consumersmentioning

confidence: 99%

Section: Corrective Remedies By the Ftcmentioning

confidence: 99%

Section: Corrective Remedies By the Ftcmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Deceptive advertising and abnormal stock returns

Jeong

Yoo

2011

International Journal of Advertising

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Copy Test Methods to Pretest Advertisements

Pechmann

Andrews

2010

Wiley International Encyclopedia of Marketing

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We define advertising copy testing, describe the major copy test methods using case examples, discuss each method\u27s strengths and limitations, and identify areas of debate. The case examples were selected based on the authors\u27 direct experiences and the methodological rigor of the methods. We define advertising copy testing as a quantitative and qualitative marketing research method that is used to pretest advertisements where numerical data on effects is collected and statistically analyzed. We discuss three copy test methods that apply the principles of sound copy testing that were developed by US advertising agencies, which require that the methods (i) be relevant to the objectives, (ii) have agreement about the use of results, (iii) use multiple measurements, (iv) be based on a model of human response, (v) consider multiple exposures, (vi) test comparably finished executions, (vii) control the exposure context, (viii) define the relevant sample, and (ix) demonstrate reliability and validity. To this list, we add (x) take baseline (i.e., pre-exposure) measurements and/or use control groups, because this reflects sound and generally accepted research standards. Our three case examples of sound copy test methods come from the US National Youth Anti-Drug Media Campaign, the US Federal Trade Commission, and the ARSgroup, a major copy test firm

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Fifty years of deceptive marketing research: A systematic review and future research agenda

Welch,

Galvan

2024

Psychology and Marketing

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Deceptive marketing practices have continued to emerge as a persistent and difficult challenge that affects marketing exchanges and government agents alike. While thorough reviews have previously emerged to explore each of the multifaceted areas of deceptive marketing practices, the current review seeks a more holistic perspective. Utilizing an exhaustive systematic review of peer‐reviewed journal articles (n = 92), the goal of the current work is threefold: (1) review and integrate existing research, (2) identify common themes to develop a comprehensive framework for deception, and (3) map future avenues for research. To accomplish this, the literature was reviewed to identify specific eras pivotal to the 50‐year evolution of deceptive marketing, which revealed several notable observations: a continuously evolving definition, an insufficient depth of theoretical underpinnings, and a vast breadth of construct diversity. After providing a clear definition for deceptive marketing, a new framework is proposed to view the deception literature based on a thematic approach (advertising, ethics & public policy, deceptive marketing tactics, covert marketing communication) encompassed by exogenous factors (posttruth phenomena, impact proximity, social consensus, and exchange type). Future research accompanies the new robust framework in the hopes that the current research will guide future researchers in expanding the domain of deceptive marketing research cohesively.

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FTC v. Novartis: The Return of Corrective Advertising?

Cited by 21 publications

References 11 publications

Deceptive advertising and abnormal stock returns

Deceptive advertising and abnormal stock returns

Copy Test Methods to Pretest Advertisements

Fifty years of deceptive marketing research: A systematic review and future research agenda

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