Stress Case

This misleading advertisement placed by Zenith Ltd can put into effect a cease and desist order against them by the local regulatory agencies which in the long term will have no relation with customers at all. It may also require them to pay civil penalties, reimbursements to the affected consumer Mrs Brown and other regulatory fines.

Zenith Ltd has misled Mrs Brown through their advertisement by falsely suggesting that she would get a machine and dryer for $90,000 but instead only received a machine. The brand had no warranty which was never communicated through the advertisement. The negative long term effects on the relationship with its customers continues, misleading advertisements offers a faster way to increase sales but faster does not mean smarter. This will lead to grave financial loss for Zenith ltd.

Also in order to build a successful business Zenith Ltd has to build a reasonable level of trust with its consumers. This trust has been shattered by misleading Mrs Brown who will by word of mouth spread her experience to other prospective consumers. Thus leaving a bad reputation for Zenith Ltd. Attaining a solid reputation is the goal of most ethical companies. A good reputation is a tremendous asset to have. The business will become known for honest and reliable business practices. This is not the case for Zenith Ltd. Mrs Brown’s negative reviews based on being deceived through false advertising will cause other consumers to shy away from this company that has been exposed to operating on false pretence.

Advertisements are usually costly and after deceiving customers through an advertisement previously its going to be even more expensive to run an ad again and to regain the customers attention. This may even prove unsuccessful because of first impression. Zenith Ltd has undoubtedly shattered its relationship with its customers through its misleading advertisement. There will be no trust whatsoever and customers will refrain from doing

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