When Hype Outshines Quality

The deceptive dazzle of dubious marketing techniques remains a complex issue with no easy answer.

A new word is making its way into the marketing lexicon – “dropshipping”. The term conjures visions of nimble entrepreneurs, building empires from their laptops, effortlessly fulfilling orders without even owning a warehouse. But behind the sleek website interfaces and Instagrammable product shots, a murkier side often lurks.

The Dropshipping Scam

The basic strategy is simple. Find a cheap product on a Chinese marketplace, slap a hefty markup on it, create a high-end online persona, and blast it across social media with the help of paid influencer endorsements. When an order comes in, you pocket the customer's money, fulfil the order by having the Chinese supplier ship directly to the buyer, and hope they don't notice the glaring mismatch between the premium branding and the subpar product.

While technically legal, this model raises ethical concerns. Customers, lured by the carefully crafted image, believe they're supporting local businesses or eco-conscious brands. What they often receive is a flimsy, mass-produced item with weeks-long shipping times and questionable customer service. The "middleman" role becomes one of profit extraction, rather than adding value.

The issues go beyond misleading branding. Quality control becomes a major hurdle when you are miles away from your supplier. Returns and refunds can be a logistical nightmare, leaving frustrated customers stuck with subpar products. And let's not forget the environmental impact of all those international shipments, often contradicting any "green" aspirations the website might espouse.

So, is dropshipping inherently bad? Not necessarily. Done ethically, it can offer a low-risk entry point for aspiring entrepreneurs. But success hinges on transparency and realistic expectations. Building a trusted brand requires more than just flashy visuals and influencer buzzwords. Quality products, responsive customer service, and clear communication about production origins are critical.

Consumers need to be wary of the glossy veneer and ask questions, research brands, and dig deeper beyond the carefully curated online image. If a deal seems too good to be true, it probably is. The obvious recommendation is to choose to support businesses that align with your values and prioritise quality over empty hype.

The future of dropshipping lies in a delicate balance. It can be a powerful tool for innovation and accessibility, but only if built on a foundation of integrity and authenticity. Unfortunately, it is but one of a number of marketing scams, giving marketing as a whole a bad rap.

AstroTurfing

In the ever-evolving world of marketing, some tactics cross the line from clever to dubious. “AstroTurfing” is a good example. Imagine a field of lush, green grass, swaying gently in the breeze. Now, picture someone meticulously weaving in plastic fibres to make it look even greener. That's astroturfing in a nutshell. It's the practice of creating fake grassroots movements or online endorsements to give the illusion of widespread support for a product, service, or cause. Think manipulated social media trends, staged protests, or gushing product reviews written by bots. The goal is to sway public opinion and make something seem more popular or legitimate than it really is.

Fear-mongering

Then there is “fear-mongering”. Remember the childhood adage, "Don't eat candy, it'll give you cavities!"? Fear-mongering marketing takes that tactic to a whole new level. It preys on people's anxieties and insecurities to sell them a solution, often painting a bleak picture of the consequences if they don't take action. Think scare tactics about financial ruin, health risks, or social exclusion. While it can be effective in the short term, it erodes trust and leaves a bad taste in consumers' mouths.

Even more pernicious is “normalizing the abnormal”. This tactic involves subtly downplaying or even glamorising unhealthy or harmful behaviours. Think airbrushed models smoking cigarettes or social media influencers promoting unrealistic beauty standards. By presenting these things as normal or even desirable, marketers can chip away at societal norms and make unhealthy choices seem more acceptable. It's a dangerous game that can have real-world consequences for people's well-being.

Deepfakes

In the new AI world, “deepfakes” are becoming more common. Imagine seeing your favourite celebrity endorsing a product they never even touched. That's the power of deepfakes – hyper-realistic video or audio manipulated to make it appear as if someone is saying or doing something they never did. While still in its early stages, this technology has the potential to revolutionise (or manipulate) marketing. The ethical implications are vast, from creating misleading advertising to damaging people's reputations.

Artificial intelligence is a powerful tool, but in the wrong hands, it can be used to manipulate and exploit consumers. Imagine an AI-powered marketing algorithm that targets your deepest insecurities and feeds you personalised ads that prey on your vulnerabilities. Or a chatbot that engages in deceptive conversations designed to extract your personal information. As AI becomes more sophisticated, it's crucial to have safeguards in place to prevent its misuse in marketing.

Local Issues

These are just a few examples of dubious marketing techniques that are raising concerns, but how prevalent are they in New Zealand? Unfortunately, there's a lack of comprehensive data specifically on the prevalence of dubious marketing techniques locally. However, there are some indicators and anecdotal evidence that suggest certain techniques may be present and growing.

In 2023, the ASA upheld complaints against several companies for misleading or deceptive advertising practices. For example, a clothing company was found to have used fake reviews to promote their products, and a cosmetics company was found to have made exaggerated claims about the effectiveness of their products.

The Commerce Commission, New Zealand's regulatory body for fair trading, receives numerous consumer complaints every year related to misleading and deceptive marketing practices. Some common complaints involve fake discounts, hidden fees, and unclear product information. In 2022, they received over 1,600 complaints related to online shopping.

Media reports and discussions have highlighted the rise of dropshipping in New Zealand, with concerns about its potential for misleading branding and quality control issues. Similarly, discussions on social media platforms like Reddit showcase individual experiences with astroturfing and fear-mongering marketing, suggesting these tactics might be employed by some businesses.

TVNZ’s FairGo consumer advocacy programme continues to be a success as it continues to help viewers resolve complaints against businesses and have featured cases where consumers have been misled by marketing practices.

For example, FairGo has investigated cases where businesses have used fake discounts or hidden fees to deceive consumers. They have also highlighted cases where businesses have failed to deliver on their promises, such as when a company advertised a "lifetime guarantee" on a product that only lasted a few months.

New Zealand doesn't operate in a vacuum, global trends in marketing often reach its shores. As dubious techniques like deepfakes and weaponised AI gain traction internationally, we can expect them to be explored and potentially misused by some marketers here.

Factors that might contribute to the prevalence of these techniques include a highly competitive market that can incentivise some businesses to resort to dubious tactics to gain an edge. While the Commerce Commission exists, consumer awareness about their role and how to report misleading practices might not be widespread.

As technology like AI and social media evolves, it creates new opportunities for manipulation and deception, requiring robust legal and ethical frameworks to keep pace.

It's important to note that the picture is not entirely bleak. Many businesses in New Zealand strive for ethical and transparent marketing practices. Consumer advocacy groups and the Commerce Commission play a role in educating consumers and enforcing regulations. Moreover, New Zealanders are generally tech-savvy and critical consumers, potentially making them less susceptible to some manipulation tactics.

Ultimately, the prevalence of dubious marketing techniques remains a complex issue with no easy answer. Continued monitoring, research, and open dialogue between consumers, businesses, and regulators are crucial to create a healthy and ethical marketing landscape in New Zealand.