In our class last week, we talked about the integral role that packaging plays for the different members of the supply chain management. For these people, it is important for the packaging to be able to display information about the product particularly the benefits it has to offer. In addition, retailers and producers take into account the turnover rate of these products in order to make sure that they make margins. One important factor for ensuring the success of this depends of the truthfulness of the label and information displayed on the packaging of the product.
In a recent video I saw in YouTube, a consumer questions the truthfulness of the packaging of Folgers coffee. He compares two coffee containers of the same size, one from this year and another 2 years ago. He noticed that the packaging is the same but the label for the current pack of coffee claims to be able to make 20 more cups with much less grams of coffee. Here’s a video for your reference.
In my opinion, truthfulness in advertising matters because it helps build the brand of a product as well as establishing trust; which in turn adds equity to the firm. It is indeed surprising that a very well established company such as Folgers would make a serious mistake such as this one. It could be an honest mistake or a deliberate intention of lying to the general public. In addition, truthfulness in advertising is a two way benefit for both consumers and suppliers. Besides the benefits mentioned previously, consumers on the other hand benefit as well since they will be able to base their decisions to effectively satisfy their needs. I believe that such false advertising simply jeopardises both parties involved. Although it may lead to short-term returns, the long-run adverse effects and consequences simply outweigh them.