September 24, 2013

Warning of Potential Side Effects of a Product Can Increase Its Sales



Drug ads often warn of serious side effects, from nausea and bleeding to blindness, even death. New research suggests that, rather than scaring consumers away, these warnings can improve consumers’ opinions and increase product sales when there is a delay between seeing the ad and deciding to buy or consume the product.

“Messages that warn consumers about potentially harmful side effects — presumably with the intent to nudge them to act more cautiously — can ironically backfire,” says psychological scientist Ziv Carmon of INSEAD in Singapore.