Marketing manipulation a consumers survival manual

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Marketing manipulation a consumers survival manual

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Marketing Manipulation A Consumer's Survival Manual World Scientific–Now Publishers Series in Business ISSN: 2251-3442 The World Scientific–Now Publishers Series in Business publishes advanced textbooks, research monographs, and edited volumes on a variety of topics in business studies including accounting, entrepreneurship, finance, management, marketing, operations, and strategy The Series includes both applied and theoretical topics that present current research and represent the state-of-the-art work in their respective fields Contributed by academic scholars from academic and research institutions worldwide, books published under this Series will be of interest to researchers, doctoral students, and technical professionals Published: Vol 14 Marketing Manipulation: A Consumer’s Survival Manual by Michael Kamins Vol 13 Project Risk Analysis Made Ridiculously Simple by Lev Virine and Michael Trumper Vol 12 Real Options in Energy and Commodity Markets edited by Nicola Secomandi Vol 11 Global Sourcing of Services: Strategies, Issues and Challenges edited by Shailendra C Jain Palvia and Prashant Palvia Vol 10 Cross-Functional Inventory Research edited by Srinagesh Gavirneni Forthcoming: Innovative Federal Reserve Policies During the Great Financial Crisis edited by Douglas D Evanoff, George G Kaufman and A G Malliaris Marketing for Economists and Life Scientists: Viewing Marketing Tools as Informative and Risk Reduction/Demand Enhancing by Amir Heiman and David Zilberman The complete list of titles in the series can be found at https://www.worldscientific.com/series/ws-npsb (Continued at the end of the book) World Scientific – Now Publishers Series in Business: Vol.14 Marketing Manipulation A Consumer's Survival Manual Michael Kamins Claremont College, USA World Scientific Published by World Scientific Publishing Co Pte Ltd Toh Tuck Link, Singapore 596224 USA office: 27 Warren Street, Suite 401-402, Hackensack, NJ 07601 UK office: 57 Shelton Street, Covent Garden, London WC2H 9HE and now publishers Inc PO Box 1024 Hanover, MA 02339 USA Library of Congress Cataloging-in-Publication Data Names: Kamins, Michael A., author Title: Marketing manipulation : a consumer’s survival manual / Michael Kamins (Claremont College, USA) Description: New Jersey : World Scientific, [2018] | Series: World Scientific-Now Publishers series in business ; Volume 14 Identifiers: LCCN 2018011140 | ISBN 9789813234703 (hc : alk paper) Subjects: LCSH: Consumer behavior | Marketing Psychological aspects Classification: LCC HF5415.32 K35 2018 | DDC 381.3/3 dc23 LC record available at https://lccn.loc.gov/2018011140 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Copyright © 2019 by Michael Kamins All rights reserved For any available supplementary material, please visit https://www.worldscientific.com/worldscibooks/10.1142/10839#t=suppl Desk Editors: Suraj Kumar/Sylvia Koh Typeset by Stallion Press Email: enquiries@stallionpress.com Printed in Singapore About the Author Michael A Kamins is currently a Professor of Marketing at the Peter F Drucker School of Management at Claremont College He was previously a Professor of Marketing, Area Head and Director of Research at Stony Brook University (SUNY) at the Harriman College of Business He also taught for 25 years at the University of Southern California as well as at the Bernard M Baruch College of the City of New York (CUNY) and New York University v This page intentionally left blank Contents About the Author v Chapter The Impact of the Marketing Environment Chapter System I Processing 15 Chapter Cognitive Biases and System II Processing 25 Chapter Social Biases 57 Chapter Memory Biases 69 Chapter The Problem of Inertia 85 Chapter Price and Its Influence Upon Choice 93 Chapter Deceptive Products: Consumer Confusion, Secondary Meaning and Dilution 109 Marketing Manipulation by the Drug Companies is Enough to Make You Sick! 123 Selling Tactics That Have the Potential to Deceive 139 Chapter Chapter 10 vii viii Chapter 11 Contents Deceptive Advertising and Promotional Techniques 151 Chapter 12 Political Advertising and Deception 175 Chapter 13 Manipulative Marketing Research from Questionnaire Design to Results 191 Winning Strategies for Online Purchases (eBay, Priceline and StubHub) 209 Wrapping It All Up 225 Chapter 14 Chapter 15 Index 233 Chapter The Impact of the Marketing Environment Imagine that you are taking your weekly trip to the supermarket to buy groceries with your significant other, and as you pass by the cereal aisle, you reach for a box of Kelloggs’ Frosted Flakes and quickly place it into your shopping basket Your significant other, whose main role in life seems to be to serve as the critic of what you eat and how you lead your life in general, tells you: “Get that stuff out of the shopping cart, first of all, it’s not good for you and secondly it’s for kids!” You counter her arguments by telling her that everyone who knows Tony The Tiger, the spokes-tiger for Frosted Flakes knows that they are GREATTTTTTTTT for you, taste good, and moreover as Kelloggs’ own advertising just recently suggested, are not ONLY just for kids, but for adults too, so there! But is your choice of Kelloggs’ Frosted Flakes a decision as simple as merely tossing it into your shopping cart? Let’s back up just a bit and examine more deeply what influenced you to choose Frosted Flakes in the first place, and what factors contributed to your belief that it is “great” for you and great tasting to boot! A colleague of mine from Stony Brook University studied this very question and found out that the advertising characters that one is exposed to in childhood influence your brand evaluations when you become an adult.1 So for those of you who had warm and fuzzy feelings when you were a kid about the Burger See Connell, Paul M., Merrie Brucks, and Jesper H Nielsen “How childhood advertising exposure can create biased product evaluations that persist into adulthood.” Journal of Consumer Research 41(1) (2014): 119–134 Wrapping It All Up 229 a Volkswagen (non-diesel) and have been pleased with the decision.6 We should all reconsider our loyalties at some point in our purchasing life since inertia and System I processing can counteract our getting the best offering on the market Making the effort to break the constraints of inertia and to avoid System I processing can be as simple as changing your purchasing habits Consider the situation when you are interested in purchasing a “new” used car Most people pick up the newspaper and look into the classified section to see what cars are available locally at a reasonable price and with low mileage However, such an approach is limited both geographically and in the options considered and is sure to result in a purchase that is less than optimal Consider forcing yourself to think through your typical approach by purposely eliminating the newspaper as a source of information Eliminate the newspaper in my search for a used car you say, are you crazy? No, I’m simply requiring you to break the mold Consider the online site “Autotrader.com.” This site allows you to find both used cars and new cars at a price that YOU can specify and, most importantly, it is linked to cars available in the entire United States With the site, you can set search specifications such as make and model, maximum price, certified, less than a certain mileage, automatic versus manual among other factors In 2013, I used this site to purchase my 2010 Volkswagen Passat Wagon Prior to the beginning of the search I told my son David, that we would go anywhere in America (except Hawaii and Alaska) to purchase the car, if the deal that was revealed was at least $2,000 less than what we could get in Los Angeles What made this approach even more worthwhile was that I had two free tickets to go anywhere in the United States courtesy of you guessed it United Airlines Hence, what might have been a boring and unproductive search via the newspaper turned into an exciting adventure with our destination determined by the results of the computer search The “best” car using Auto Trader was found to be offered by Momentum Volkswagen in Houston We went there, and the rest is history! Another way to break the mold is to think more broadly in terms of who sells used cars Using our System I “automatic” thinking cap, of course we I bought Honda’s from 1984 until 2013 and presently I own VolksWagons 230 Marketing Manipulation first think about private individuals and then used car dealers and car dealers in general, but if we begin to deliberate on this question and use System II processing, we realize that those who rent cars also sell cars especially when they need to welcome in the next year’s model This event occurs typically around late August as the New Year model is typically introduced So, for my most recent used car purchase, I looked online at Hertz and Avis in late August of last year for a 2013 Tiguan Hertz, since it has the reputation of being the largest rental car service in the world, I suspected would not be the best place to buy a used car since the car chosen would probably have been driven by more people than those renting from Avis and hence have more mileage.7 This turned out to be true, so I purchased my 2013 Tiguan for approximately $5,000 less than others offered it for from Avis, and it had 28,878 miles, not too shabby a purchase In case you are wondering, the car has stood up to the test of time Another example that involves breaking the mold involved a conversation that I had with an eBayer who was selling an 1877 Indian penny in fine condition He offered it for sale with a minimum bid of $750.00.8 He could NOT sell the coin and listed it four times in a row, each for a period of seven days without success I contacted him and told him that the reason he could not sell the coin was because he made it extremely difficult to get anyone to bid on it That is, to initially bid on the coin, one had to place a bid of $750.00 I told him to offer the coin, without a minimum bid and without a reserve price (i.e., the price that when reached instructs eBay to sell the coin) His reaction was anger, he told me that I was crazy and that if he didn’t use the tactic of a minimum bid and a reserve he could end up selling the coin for a penny, at a tremendous loss! I explained to him that the chance that the coin would sell for a penny equaled the chance that Hillary Clinton would appear as a speaker at the Republican National Convention To emphasize my advice, I engaged him on a gamble I told him that I would guarantee a price of $750.00 if he would put the coin up for sale with no minimum and no reserve and I promised Some of you may recall Avis’ famous two-sided refutational slogan of “We’re #2 so We Try Harder.” The coin was actually worth $825 in the condition he was selling it Wrapping It All Up 231 him that I would not bid on it so as to rig the results So, if the coin sold for $550.00, I would pay him $200.00 to make up the difference However, if the coin sold for more than $750.00 he would pay me the difference He agreed, the coin sold for $818.67 and I received a check in the mail for $68.67 Now I tried the same approach when I found a baseball card with the image of Yoenis Cespedes on the front and the statistical record and name of Daniel Murphy on the back I told my wife that this was an incredible find and that we could retire for life just as soon as I put the card up for sale on eBay I carefully took a picture of the front of the card and the back, set the auction for 10 days and started it off at one penny with absolutely no reserve I wrote in the description of the auction that this was the “FAMOUS” Cespedes/Murphy error card, but I had no idea if this card was valuable or if the Topps Company had mistakenly issued many of them I couldn’t wait to see the price rise and rise in the auction Well, guess what, I received a first bid of a penny, minutes after I listed the auction and despite looking at the auction over 200 times, the final bid remained at a penny In my email to the winner, I told him not to pay and that I would spring for the free stamp So, when my wife asked me where we were going to retire with the proceeds of the auction, I told her I didn’t even make enough money for us to buy a tent so that we could sleep on the streets, or for that matter, the anchors to pitch the tent So what was the difference between selling the Indian penny with no minimum and no reserve versus the Cespedes/Murphy error card? The difference is that there is a strong market among coin collectors for the 1877 Indian penny Hence, selling it without a reserve or a minimum bid is not risky because on eBay, given the number of participants on the auction site, the final price should reach the market price However for the baseball card, this was an undefined entity in terms of value and hence if it was NOT in demand, it could sell for one penny, as it did So the lesson is, if you are going to sell an item without any protection in the form of a minimum bid or a reserve price, make sure that the item has a defined market If it does not, you may sell it for a lot less than it is worth, or at least a lot less than you expect So in closing, the best way to avoid marketing manipulation is to anticipate that you could become a victim if you are not engaged in what’s happening around you While thinking automatically has the advantage of 232 Marketing Manipulation simplifying your life, it also sets you up to mindless behavior which sets course directly into dangerous waters (or knee deep in soup) Consider Brian Wansink’s research on mindless eating behavior In one experiment where subjects were asked to consume as much soup as they wanted, those who were given self-refilling soup bowls that filled secretly as they ate, consumed 73% more soup relative to those subjects exposed to regular soup bowls Surprisingly, the former group reported that they did not believe that they had consumed more soup than the other group nor did they report that they were more sated than those who had eaten from normal bowls.9 As perception becomes one’s reality, remove the automatic controls on your behavior so that marketing manipulation does not become your reality, and you not end up in the soup Wansink, Brian, James E Painter, and Jill North “Bottomless bowls: Why visual cues of portion size may influence intake.” Obesity Research 13(1) (2005): 93–100 Index attack ad, 50 attribution theory, 66 automatic processing, 25 Autotrader.com, 229 availability heuristic, 11, 72 Avengers, 151 Avis, 200, 230 A A1C , 127 a fear appeal, 78 A Million Ways to Die in the West, 77 ABC, 145 Academy Award, 211 adaptation-level theory, 103 advertising, 1–3, 8–10 advertorial, 203, 206 affect, 180 affective, Agida, 66 Alamo, 200 Alaska, 228 Alfa Romeo Spider, 201 Allergan, 159–160, 162, 173 Alpert, Eddie, 137 Amazon, 197 American Pickers, 165 American University, 93 AMTRAK, 93 anchoring, 27, 102 anchoring effect, 27–28 And That’s Not All Technique, 101 Anheuser-Busch, 106 Animal House, 54 Ardennes, 203 Ariely, Dan, 20, 97 Asch, Solomon, 192 Assael, Henry, 64, 85 Ativan, 203 Atlantic, 206 B Baader–Meinhof Effect, 47 bachelor, 37 bachelorette, 37 Bait and Switch, 146 ball point pen, 64 bandwagon effect, 32, 219 Barcelona, 71 Barnes and Noble, 210 barriers to entry, 88 Barrons, 103 base rate, 36 base rate fallacy, 34 Batman, 145 BBB, 148 Belt Parkway, 116 Belushi, John, 54 Bernard M Baruch College, Belushi, John, 54 Better than Botox, 159, 173 Beverly Hills, 159–160 binge eating, 49 Black Hole Bias, 45 233 234 Blackett, Tom, 131 Blanton Manufacturing, 164 blurring, 119 BMW series, 43 BOGO, 100, 147–148 Bond, James, 102, 201 Botox, 159–161 Botox Cosmetic, 159, 161–162 brand, 117–118, 163 brand loyal, 38, 164, 225, 227 brand name, 76, 108, 128–129, 164 branding, 112 Brexit, 191, 194 Brilinta, 129 Brintellix, 129 Britain, 191 British Pound, 43 Broadway, 105 Brooklyn, 116 Brooklyn Nets, 104 Brown, Gordon, 186–187 Buchanan, Bruce, 156 Bud-Light, 69 Budweiser, 106–107 Buffalo Nickel, 140, 218 Bumble Bee, 63 bundle, 19, 98–99 Burger King, Buy It Now, 41, 213 Bynes, Amanda, 90 C 2005 Congressional Record, 181 Cairo museum, 130 California, 112, 125, 194 calorie content, 108 Calvin Klein, 19, 147 Cambridge University, 143 Cameron, David, 191, 194 Campbell’s soup, 76 Canada Goose, 115 Cancún, 104 Captain Crunch, Captain Jack Sparrow, 123 Cardio-Scan, 34–35 Index Carson, Ben, 179 category prototype, 76 Caterpillar, 200 CBS News Healthwatch, 124 CDC, 127 Celebrex, 129 Celexa, 129 cereal, 62 Cespedes, Yoenis, 231 Chasing Tail, 165 Chelsea, 222 China, 149 Chiquita Banana, choice behavior, 199 Chrisdien Deny, 113 Christian Dior, 113, 115 Christian Mingle, 60 chroma, 17, 201 chunking, 164 Cialis, 128 Cinque Terra, 168 Claritin, 130 class action, 12, 167 class action lawsuit, 157 Clippers, 55 Clinton, Hillary, 50 Clooney, George, 66, 97 Clostridium botulinum, 160 Clostridium difficile, 129 CNBC, 210 CNN, 31, 179–180, 182 Coaster Boy, 91 Coca-Cola, 63, 76, 109, 117 Cochran, Johnnie, 53 cognition, 71, 80, 82, 125, 180 cognitive, 4–5 cognitive bias, 11, 23, 27 cognitive dissonance, 48, 146 cognitive effort, 21, 85 cognitive mechanisms, 25 cognitive miser, 86, 94, 96, 225 cognitive resources, 103 Corzine, Jeff, 187 Coke, 117 Colgate, 76 Index color, 128, 199–200 Cooper, Anderson, 179 comparative advertising, 108 Conan the Barbarian, 69 confidence, 58 confirmation bias, 36, 47, 139 Connecticut, 112 consumer, 16 consumer behavior, 85 consumer biases, 11 consumer confusion, 110 consumer reports, 65 consumption behavior, 48 consumption patterns, 38 contrast, 168, 181 Corbyn, Jeremy, 191 Cordoba, 71 Corona, 200 Costner, Kevin, 211 country-of-origin, 106, 108, 149 Cramer, Jim, 67 Creamo, 163 Crisco Shortening, 76 Cruz, Ted, 185 Cruz, Penelope, 65 cue, 16–17, 49, 149, 217 D Daily News, 145 Dangerfield, Rodney, 130 Dartmouth, 101, 143 Dartmouth College, 54 death tax, 42 deception, 154–155 deceptive advertising claims, 159 decision process, 13 decision-making, 4–5, 7, 11, 13–14 Decker, Brooklyn, 198 degenerative myelopathy, 44 Delta, 228 Democrats, 181 denomination effect, 38–39 diabetes, 45, 126 dilution, 118 235 direct selling, 99 Direct-to-Consumer (DTC), 124, 128, 162 Docusate, 129 Dooney & Bourke, 110 Draft Day, 211 durability, 170 E e-commerce, 72 Eagle, Angela, 191 Eastwood, Clint, 77 eBay, 6, 13, 32, 34, 40, 43, 50, 58, 72–74, 88–89, 121, 150, 209, 212–214, 216–219, 231 egocentric bias, 72–73 emotions, 4–5 endocrinologists, 89 endowment effect, 39–40, 48, 224 entry barriers, 76 equal, 200 Escalation of Commitment, 43 Europe, 191 European Union, 191–192 Exubera, 89 F fading affect bias, 74–75 fair price, 104 false advertising, 153 false advertising claims, 156 false and deceptive advertising, 173 false consensus effect, 58–59 false negative, 34 false positive, 34 Fantastic Four, 151 fat content, 108 Ferrari, 200–201 Fiat, 195–196 final four, 223 Firestone Tire Company, 111–112 First-Mover Advantage, 76 Fishburne, Laurence, 136 Flonase, 130 Florence, 168 focal item, 99 236 Fonz, 41 Food and Drug Administration (FDA), 7, 89–90, 124, 127, 161–162 Ford, 111–112 Ford Explorer, 111–112 Fort Knox, 119 Fox, 179–180 frame, 165 frame of reference, 46 framing, 75, 170, 203 framing effect, 41–42, 71 France, 113, 140 franchising, 99 Freeman, Morgan, 77 Friendly Frost, 145 Frontline interview, 41 Frosted Flakes, FTC, 15, 206 G Gardner, Meryl, 80 Garner, Jennifer, 211 GE, 145–146 Geico, 79–80 GERD, 125 Germany, 107 Gershwin, George, 49 Gestalt psychology, 82 Gettysburg, 176 glabellar lines, 161 Glaxo-Smith Kline, 130 Gleason, Jackie, 116 Goldman, Doron, 156 Graham, Lindsay, 184 Great Pyramid, 130 Green Eggs and Ham, 185 Grenada, 71 H Hackman, Gene, 77 halal, 63 Hamburger Helper, 129 Hanover New Hampshire, 101 Harrison, Rick, 40 Harvard, 143 Index Harvard Business Review, 45 Hawaii, 125 Hebrew University, 5, 185, 217 Heineken, 200 Heraldic lion, 143 herd behavior bias, 32, 219 Hertz, 200, 230 heuristic, 13, 21, 32, 53, 86, 118 Hi-C, 198 Hierarchy of Effects, 80, 180 high chroma, 166–167, 202 history, 194, 220 History Channel, 165–166 Hitler, Adolf, 175 Hill, Jonah, 211 Hobble-Skirt, 117 hockey jersey, 218–219 Hoffman, Dustin, 93 Holbrook, Morris, 80 Hollywood Bowl, 49 Honda, 38 Houdin, Robert, 57 Houdini, Harry, 57 Houston, 229 How the West Was Won, 165 hue, 200–201 H&M, 197 I identification, 55 Illinois, 112 illusionary superiority, 60 illusory superiority, 61 immunize, Inbev, 106 Indian pennies, 73, 215, 231 inertia, 85, 89, 225–227 inoculate, 29 inoculation theory, 170 insulin, 89–90 Intelius, 166 interior department, 163 international branding, 112 Investor’s Business Daily, 45, 86, 176 Index involvement, 85 iPhone, 168 isolation effect, 80 Israeli Shekel, 42 Ivory soap, 76 Ivy league, 143 J 21 Jump Street, 211 22 Jump Street, 211 J-Date, 60 Jackson, Michael, 160 Jacoby, Jacob, 82 Jenner, Bruce, 109 Jenner, Caitlyn, 79 Jet Blue, 228 Jewish, 63 Jewish dietary law, 62 John Deere, 200 John F Kennedy airport, 227 Johnnie Walker, 114 Johnson, Lyndon B (see also President Johnson), 43, 104 K Kamins, Michael, 217 Kardashian, Kim, 78, 173 Kraft Macaroni and Cheese, 118 Kashi, 61–63 kashrut, 62 Keat’s heuristic, 53 Keller, Helen, 113–114 Keller, Kevin Lane, 128 Kellogg’s Corn Flakes, 76 Kelloggs, Kennedy, John, F (see also President Kennedy), 43, 182, 228 Keytruda, 129 Kill A Mockingbird, 150 Klein Becker, 159 Klein, Arnold, 160 Kohler, Wolfgang, 80 Kona, 74 Kors, Michael, 19 kosher, 61–64 237 Kotler, Phillip, 128 Kotler and Keller, 128 Kubota, 200 L LaBatt, 200 Labour Party, 191 LaCoste, 118 Lafayette College, 53 Lake Wobegon, 61 Lake Wobegon Effect, 60 Lancôme, 148 Lanham Act, 110, 112, 153 Las Vegas, 74, 202 Last Act price, 29 Lauren, Ralph, 19, 172 Lawrence of Arabia, 165 learning theory, 49 Lee, Harper, 150 Lemmon, Jack, 211 Levitra, 203 Levitt, Ted, 102 Lewis, Jerry, 105 Lewis, Michael, 210 Lindell, Mike, 147 Loews Theaters, 156 Lorillard, 156 Los Angeles, 55, 74–75, 96, 228 Los Angeles Kings, 91, 222, 224 loser’s curse, 212–213 Louis Vuitton, 110 low involvement, 17–18 Luntz, Frank, 180 M MacFarlane, Seth, 77 MacLaine, Shirley, 211 Macy’s, 147 Mad Money, 67 Madison Square Garden, 104 Madrid, 71 Manhattan, 221 Mann, Alfred, 90 MannKind, 90–91, 209 market leaders, 32 238 market leadership, 33 marketing, 85 marketing manipulation, 13–14 marketing maven, 65, 73 marketing mix, 10 marketing tactics, 13 Maserati, 168 Mason, Jackie, 80 Match.com, 60 materiality, 154 Matsuyama, Brad, 210 maximum bid, 212 Mays, Billy, 100 Mazursky, David, 185, 217 McConnell, J Douglas, 107 McDonalds, 98, 187 McGuire, William, 170 Medavoy, Irena, 161 memory, 72 memory biases, 210 memory-based biases, 13 Merck, 130 mere exposure effect, 8, 48 minimization, 74 minimization hypothesis, 74 minimum bid, 214, 230 Minute Maid, 109 MIT, 97 mobilization, 74 model, 49 Molokai, 202 Money Monster, 67 more the better bias, 12 mortality salience, 52 Morwitz, Vicky, 197 mouse, 160 MSNBC, 179–180 MSRP, 105 multi-level marketing, 99 Murakami, 110 Murphy, Daniel, 231 Mutombo, Dikembe, 79 Mutual of Omaha, 120–121 Index My Pillow, 147–148 M&M’s, 105 N naïve theories, 22 naive belief, 21, 33 National Diabetes Fact Sheet, 89 Naples, 168 Nasonex, 130 National, 200 NBC Business News, 156 NCAA, 223 negative option pricing, 17, 167 negativity bias, 49, 51, 72, 88 Nelson, Willie, 90 New Jersey, 152, 187 New Mexico, 123 New York, 115, 196, 228 New York City, 93, 221 New York Daily News, 176 New York Knicks, 104 New York Rangers, 146, 223 New York State Attorney General, 173 New York Stock Exchange (NYSE), 210 New York Times, 60, 93, 114–115, 161, 187 New York University, 156, 169, 197 Newark, 152, 228 Nexium, 124 nibbler, 218 nibbling, 220 NIH, 127 Nissan, 102 Noy, Avi, 217 numismatist, 215 O O’Brien, William, 210 Obama, Barack, 182 odd-pricing, 94, 96 odd-pricing effect, 94 Oklahoma City, 181 Olympic Decathlon, 109 one-sided, 167 O’Neill, William, 45 Index order, 166 Ortega, 63 Orthodox Union of Rabbi’s, 64 out-group homogeneity bias, 61, 63 P packaging, 128 Palin, Sarah, 176 Paris, 140 Parke–Davis, 126 Patent Office, 163 Patton, George, 165 Paul, Les, 40 Pawn Stars, 40–41, 165 Peace Corps, 51 pennies a day, 103 People Search, 166 Perkins, Marlin, 120 perceived risk, 106 perceptions, 16 peripheral, 17 Personal Post, 81 Personal Post Office, 81 Pesci, Joe, 70–71 Pfizer, 90, 126 Pfizer Corporation, 89 Phase I, Phelps, Michael, 90 pioneer brands, 32, 76 Pitney Bowes, 81 Pitt, Brad, 97 Place (distribution), 92 Popeil, Ron, 100 Post, 62 Post Raisin Bran, 62 Prevagen, 158 price, 92 price anchoring, 101 price anchors, 214 price bundling, 18 price lining, 149 price sensitivity, 108 price–quality, 108 price/quality inference, 108 priceline, 72–74, 209, 220, 222 239 Prilosec, 124 primacy and recency effect, 76 primacy effect, 76, 192–193 Princeton, 54, 143 Princeton University, 54 processing, 16 product, 92 prominence effect, 80 promotion, 92 prospect theory, 101 psychology, 27 puffery, 157 Pulitzer prize, 176 pump and dump, 59 purchase, 180 purchase intention, 193 purple pill, 124 pyrazinamide, 129 Q quality, 149, 170 R R.J Reynolds Tobacco Company, 156 Radio Flyer company, 91 Raisin Bran, 62 Ramirez, Michael, 176 rational man, 32, 217 reactance, 52 reasonable consumer, 158 recency, 77 reciprocity bias, 141 rectangular distribution, 162 Red Bull, 156–157 Reese’s Dark Chocolate Peanut Butter Cups, 45 Reese’s Peanut Butter Cups, 45 reference point, 103 reference price, 103, 105 Rembrandt Company, 152 Republicans, 50, 180–181, 184 reserve price, 214, 218, 230 Reuters, 210 Rezulin, 125–128 Rhapsody in Blue, 49 240 Rhyme-as-Reason Effect, 52 Rickles, Don, 71 Robins, Rebecca, 131 Roosevelt, Eleanor, 178 Rolling Stone, 115 Rome, 75, 168 Ronald McDonald, Roosevelt, Franklin, 175 Roosevelt Island, 178 Rorschach test, 65 Rotarian, 206 S Salem Cigarette, 83 Sanders, Bernie, 179 schema, 70 schema incongruence effect, 69 Schindler, Robert, 95 Schneiderman, Eric, 142 Schul, Yaacov, 185 Schwarzenegger, Arnold, 69–70, 154 Seawolf red, 200 secondary meaning, 114–116 See’s Candies, 63 selective attention, 47 selective perception, 54 self-serving, 65–66 self-serving bias, 64 serial positioning, 166 series, 43 setting your reserve, 44 Seville, 71 Sex in the Ancient World — Pompeii, 165 Shamban, Ava T., 159 Shanghai, 113 shape, 128 Shatner, William, 222 Sheepshead Bay, Brooklyn, 158 sided advertising, 169 silver dollar, 140 simple heuristic, 108 Simpson, O.J., 53 Skechers, 173 sleeper effect, 185–187 Snickers, 70–71, 116–117 Index Snickers bar, 71 sniper, 218 sniping, 216–217 social acceptance, 22 social biases, 14, 55 social cues, 217 social psychology, 27 social security number, 28 sociology, 27 Sorrento, 168 Southern California, 65, 172 Spain, 71 Spiderman, 151 Spirit Air, 74 Splenda, 200 sponsored content, 206 spotlight effect, 78 Stanford, 58 Stanford Research Institute, 107 Stanley Cup, 223–224 Staples Center, 91 Star Alliance, 75 Starbucks, 200 Steinhart, Yael, 217 Sterling, Donald, 55 Stern School, 156 Stony Brook, Stony Brook University, 1, 106, 200, 228 Strivectin, 159, 173 StubHub, 209 Suffolk County, 102 sunk cost effect, 46 sunk cost fallacy, 44, 145 SUNY, 32 Super Bowl, 69 supplemental item, 99 Supreme Court, 164 Sweet’N’ Low, 200 Swiss–Webster mice, 160 Sylvania, 146 System I, 13–14, 16, 25, 41, 118, 144, 166, 173, 225, 227–229 System I processing, 17, 20–21, 226 System II, 13–14, 41, 228 System II processing, 23, 25, 230 Index T Talon zippers, 78 tarnishment, 119–120 Tatum, Channing, 211 Taylor, Elizabeth, 160 telemarketing, Terminator, 69 Texas, 112 Thaler, Richard, 215 The Apartment, 211 The Apprentice, 180 The Guardian, 191 The Internship, 211 thermoregulation, Theron, Charlize, 77 Third Reich, 203 Tiguan, 230 Toledo, 71 Tony the Tiger, Topps Company, 231 Toucan Sam, trade dress, 113–115 trademark, 118 trademark dilution, 119 transaction compliance, 103 TripAdvisor, 50, 64–65 Triumph cigarettes, 156 Tropicana, 2, 109 Troy-Hills New Jersey, 159 True Lies, 154 Trump University, 141–143 Trump, Donald (see also President Trump), 50, 141–142, 176, 179, 184 TSA, 93 Twilight movies, 77 two-sided, 169, 172 two-sided non-refutational appeal, 172 two-sided refutational ads, 170 two-sided, advertising, 168 Type I error, 34 Type II, 34 U U.S dollar, 43 UCLA, 200 241 Unforgiven, 77 United Airline, 49, 227, 229 United Kingdom, 191 United States, 229 United States Department of Agriculture, 163 United States Senate, 185 United’s Mileage Plus program, 86 University at Buffalo, 32 University of California-Santa Cruz, 213 University of Chicago, 95, 215 University of Nebraska, 60 University of Southern California, 38, 53, 200, 214 V value, 201 Vaughn, Vince, 211 Verne, Jules, 40 Viagra, 128, 203 Victor’s Little Secret, 119 Victoria’s Secret, 119 Victoria’s Secret Angels, 120 Virgin America, 228 Voight, Jon, 93 Volkswagen, 102, 170 Von Restorff, Hedwig, 80 Von Restorff Effect, 79 W Waldorf Astoria, 222 Walker, Morton, 135 Wansink, Brian, 232 Wall Street Journal, 103 Warren, Lori, 95 warmth, 5–6 Warner Lambert, 126 Washington, D.C., 93, 167 Washington Heights, 145 Weiner, Anthony, 193 Weiss, Leopold, 57 Wesleyan Media Project, 182 Wharton School, 143, 197 “wheat backed” cents, 40 Wild Kingdom, 120 242 Wilderness AT tire, 112 Williams, Andy, 145 Wilson, Owen, 211 winner’s curse, 44, 212, 215, 219 Winston Lights, 156 wisdom of the masses, 33 Wisk, 78–79 word-of-mouth, 129 Wrigley’s chewing gum, 76 X X-Men, 151 Xyzal, 130 Index Y Yahoo auctions, 89 Yale, 143 YouTube, 210 Z Zajonc, 198 Zeigarnik, Bluma, 83, 210 Zeigarnik effect, 80–82, 145 Zuni Indians, 123 Zwicky, Arnold, 47 World Scientific–Now Publishers Series in Business (Continuation of series card page) Vol The First Great Financial Crisis of the 21st Century: A Retrospective edited by George G Kaufman and James R Barth Vol Advances in Data Envelopment Analysis by Rolf Färe, Shawna Grosskopf and Dimitris Margaritis Vol Diagnostics for a Globalized World by Sten Thore and Ruzanna Tarverdyan Vol Superpower, China? Historicizing Beijing’s New Narratives of Leadership and East Asia’s Response Thereto by Niv Horesh, Hyun Jin Kim and Peter Mauch Vol Contingent Convertibles [CoCos]: A Potent Instrument for Financial Reform by George M von Furstenberg Vol The Analysis of Competition Policy and Sectoral Regulation edited by Martin Peitz and Yossi Spiegel Vol The History of Marketing Science edited by Russell S Winer and Scott A Neslin Vol Dodd–Frank Wall Street Reform and Consumer Protection Act: Purpose, Critique, Implementation Status and Policy Issues edited by Douglas D Evanoff and William F Moeller Vol Games and Dynamic Games by Alain Haurie, Jacek B Krawczyk and Georges Zaccour ... of Congress Cataloging-in-Publication Data Names: Kamins, Michael A. , author Title: Marketing manipulation : a consumer’s survival manual / Michael Kamins (Claremont College, USA) Description:... Douglas D Evanoff, George G Kaufman and A G Malliaris Marketing for Economists and Life Scientists: Viewing Marketing Tools as Informative and Risk Reduction/Demand Enhancing by Amir Heiman and David... 251–259 6 Marketing Manipulation physical warmth leads to social warmth and appreciation of others,7 and that brands are often used as a device to reflect one’s own identity,8 the authors maintained

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  • About the Author

  • Contents

  • 1. The Impact of the Marketing Environment

  • 2. System I Processing

  • 3. Cognitive Biases and System II Processing

  • 4. Social Biases

  • 5. Memory Biases

  • 6. The Problem of Inertia

  • 7. Price and Its Influence Upon Choice

  • 8. Deceptive Products: Consumer Confusion, Secondary Meaning and Dilution

  • 9. Marketing Manipulation by the Drug Companies is Enough to Make You Sick!

  • 10. Selling Tactics That Have the Potential to Deceive

  • 11. Deceptive Advertising and Promotional Techniques

  • 12. Political Advertising and Deception

  • 13. Manipulative Marketing Research from Questionnaire Design to Results

  • 14. Winning Strategies for Online Purchases (eBay, Priceline and StubHub)

  • 15. Wrapping It All Up

  • Index

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