In 2010, New Balance introduced its’ new product, the true balance toning shoe. In its advertisement, New Balance claims that the shoe will be able to “burn calories and get firmer legs and buttocks”; but is this true?
According to a study by the American Council on Exercise, when compared to a standard running shoe, the true balance toning shoe does not show a significant increase in muscle activation. This implies that there is no evidence to prove that the shoe will burn calories and get firmer legs and buttocks. If this is the case, why must New Balance make a false claim?
Due to globalization and trade agreements in today’s world, there are a lot of direct competition, indirect competition, and even marketplace competition. For example, Sketchers and Reebok had came out with a similar toning shoe called Shape-ups and EasyTone. In order to success, one must develop sustainable competitive advantage over the others. By claiming that the true balance can help to burn 8% more calories than other sneakers, New Balance is trying to convince customers to buy their shoes. Unfortunately, by deceiving customers, New Balance is being irresponsible and nevertheless, it will damage the company’s reputation. As a consequence of the deceiving act, New Balance got sued and had to pay $2.3 million to settle the false advertising claim.
Although earning money is crucial for most companies, the executives of the company must assure that they are doing it ethically. By being ethical, the company will earn a good reputation and therefore will not need to be worry about having no business. Sometimes, there are certain things which are more important than money.
http://well.blogs.nytimes.com/2011/07/13/can-shoes-really-tone-the-body/
http://www.huffingtonpost.com/2012/08/29/new-balance-toning-shoe-settlement_n_1839537.html
http://www.nytimes.com/2010/09/20/business/media/20adco.html?_r=0