Dell’s Marketing Deception Techniques

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Dell’s Marketing Deception Techniques 1. Introduction Ranked No. 33 on the 2009 Fortune 500 list, one would imagine a corporation such as Dell, would have the least amount of issues with their consumers, especially when their campaign emphasizes on customer service (Fortune, 2009). Out of all the Fortune 100 companies, they all engage in business with Dell. In the United States, for ten years in a row, Dell has been the number one PC supplier for Small and Medium Enterprises (SME) (Dell, 2009). However, regardless of Dell’s success in the corporate and end user market, Dell has for long been criticized for its ill-mannered practices of its marketing strategies. In this paper we will examine two incidents of Dell’s deceptive advertising techniques, followed by suggestions on the problems, and completed with a conclusion. 2. Dell’s Delusive Marketing Activities a) Deceptive Promotion On May 15, 2007 Dell was being sued by New York Attorney General Andrew Cuomo for deceptive business and advertising practices. According to State A.G. (attorney general), Dell was practicing the "classic bait-and-switch scheme", offering “no-interest” for payment plans (Ogg, 2007). When customers tried to take on such offers they were denied and offered financing rates of over 20 percent. According to Business First (2008), Dell was brought to court in 2007 due to engagement “in repeated misleading, deceptive and unlawful business conduct, including false and deceptive advertising of financing promotions and the terms of warranties, fraudulent, misleading and deceptive practices in credit financing and failure to provide warranty service and rebates." Dell is has been charged for deceptive marketing practices, especially with deceptive promotion or ‘bait and switch’ scheme (Armstrong & Kotler, 2009). Deceptive promotion includes providing misleading promotional

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