The fact : the Italian Competition Authority fined the companies of the famous influencer Chiara Ferragni , along with the confectionery company Balocco , with a total penalty of €1,075,000 for unfair commercial practices related to the Pink Christmas pandoro. The fine for Balocco is €420,000. The Antitrust claims that the companies led consumers to believe that by purchasing the pandoro, they were contributing to a donation to the Regina Margherita Hospital in Turin , when in reality, the €50,000 donation had already been made by Balocco months earlier. Companies associated with Chiara Ferragni collected over one million euros from the initiative. How did they get to this point? First mistake: confusion What was the goal of the marketing campaign ? To improve the company's ethical reputation or to reach the audience that adores Chiara Ferragni? They are two different levels: the first is moral, the second is hedonistic. Why muddy the waters? If the goal was to improve the co
December : a time of carefree afternoons spent shopping with your loved ones. As you stroll through the crowded, festive streets illuminated with a thousand colors, your attention as food enthusiasts is caught by two stands on either side of the street. Both sell artisanal jams: on one counter there are 24 variants; on the other counter there are only 6 variants. Which of the two stands is more likely to pique your interest? Which of the two stands is more likely to turn you into their customers? The answers to these two questions may not coincide . Too much choice leads to no choice In 2000, psychologists Sheena Iyengar and Mark Lepper conducted an experiment to check the correlation between the number of alternatives available and the customer conversion rate . The experiment didn't take place in Christmas markets but in Menlo Park, California, in an upscale supermarket, where potential customers were lured with a $1 discount voucher. The results seem counterintuitive: