Document Type:Essay

Subject Area:Marketing

Document 1

In so doing, it would have a significant adverse impact on the welfare of an individual, the agency while helping the perpetrator of the news to gain a political or financial advantage. With the advent of the social media as among the leading platforms for communication among the individuals, it has made it hard for the people to differentiate between fake and authentic news since the intention of the person posting the information may not be known. Additionally, the use of the social media is not well regulated hence people can post some information that is aimed at damaging the organization or misleading the information without necessary action being taken against them. Fake news has been widely used in marketing where some industries design some information which is not true and communicate it through the social media or any other media through agents with an intention of gaining a competitive advantage in the marketing environment (Voirin, 2013).

Sign up to view the full document!

Since the misleading information is about the products or the behavior of a given product or organization respectively, some consumers may end up making decisions based on the information without necessarily taking their time to authenticate the information. This is because most of the consumers do not trust the information being broadcasted by the companies through various media. Due to this, consumers will end up making decisions through speculations hence affecting their level of consumption. In essence, a rational consumer would be keen on purchasing a product based on the provided information. However, due to the frequent cases of fake news, which are propagated in various media, the consumers get afraid to make purchases in the fear that they may end up making the wrong choice (Allen, McAleer and Reid, 2018).

Sign up to view the full document!

This, therefore, affects the consumer willingness to spend on certain products based on the provided information. The comment was misinterpreted by the Donald Trump supporters that the chief executive officer of Pepsi Corporation hates their president and they should boycott their products and shift to other brands such as Coca Cola which termed it as more delicious as compared to the beverage products made by the PepsiCo. This information was adhered to by most of the consumers especially the supporters of Donald Trump who boycotted the products from PepsiCo and shifted their attention to the products by coca cola (Chester and Montgomery: 2017, 4). This significantly reduced the sales volume by the Pepsi Corporation and increased sales for the coca cola Corporation. The supporters of Donald Trump, therefore, succeeded in misinforming other supporters about the products of Pepsi corporation yet the intention of the chief executive officer on his comment was to ensure that there is steady production even during persistent protest in the united states of America especially those did not support election of Donald Trump as their president.

Sign up to view the full document!

From $10 to earn access

Only on Studyloop

Original template