2018-2019 BBA Marketing Seminar

The Impact of Product Claims about Magic Ingredients on Consumer Choice

Kaiyang Wu, Doctoral Student, Wisconsin School of Business, University of Wisconsin-Madison

Synopsis

Companies constantly introduce ingredients (termed as magic ingredients) whose efficacy is ambiguous but not scientifically refuted, in order to compete in the lucrative self-care markets (e.g. supplement, hair care, body care). Yet, marketing claims of those ingredients are poorly regulated by the US government, putting vulnerable consumers at physical and financial risk. The purpose of this research is to not only demonstrate the effect of product claims about magic ingredients on consumer choice, but also identify consumers who are vulnerable to such claims.