Power of Advertising claims for Credence Goods: Can it shape Placebo effect and Repurchase Decisions?

Anjan Bharali; Chimun kumar Nath

doi:10.54609/reaser.v22i2.95

Anjan Bharali Department of Commerce, Dibrugarh University, India
Dr. Chimun kr. Nath Department of Commerce, Dibrugarh University, India

DOI: https://doi.org/10.54609/reaser.v22i2.95

Keywords: Advertising, Placebo effect, Repurchase, Credence Goods, Advertising claims

Abstract

This study finds out if Advertising claims of credence goods can shape Placebo effect and lead to repurchase decisions or not. The concept of extrinsic factors of a brand being an important ingredient in consumer satisfaction is the antecedent for the study. Studies have been made to show how Advertisement helps products and services to sell more. But very few have tried to connect it with credence goods and know how consumers perceive satisfaction for those products. Further the phenomena of repurchase decisions of credence goods is still unrevealed. On the basis of focus group technique data has been collected for five brands which are considered as credence goods and analysed whether advertising claims can create Placebo effect or not. The analysis of the factors involved in taking repurchase decision of credence goods has also been studied by selecting variables taken as basis. The results indicate that Advertising claims of credence goods can lead to Placebo effect for those where consumers have strong urge for a positive result after using the brand. Rationality of a consumer influences the repurchase decision inversely. There is a strong connection between Placebo effect, Rationality and Repurchase decision of credence goods. Marketers thus have to be cautious while publishing claims of such goods.

Author Biographies

Anjan Bharali, Department of Commerce, Dibrugarh University, India

Research Scholar

Dr. Chimun kr. Nath, Department of Commerce, Dibrugarh University, India

Associate Professor

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