Calling Out Shein’s Questionable Marketing Tactics

31 Tuesday Mar 2026

Posted by in Chapter 04: Conscious Marketing, Corporate Social Responsibility, and Ethics, Chapter 19: Advertising, Public Relations and Sales Promotions

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istockphoto / fizkes

When it was first introduced, the U.S. Federal Trade Commission’s (FTC) National Do Not Call Registry radically altered the marketing landscape. It substantially constrained the entire telemarketing sector, by making it illegal to place unsolicited calls to consumers who had indicated their disinterest, by signing up for the registry. Today, annoying, unsolicited calls still might occur, but they are far fewer than was the case in the past.

This dramatic shift in the prevalence of telemarketing calls might explain the strong reactions of consumers in Indiana who accused the fast-fashion retailer Shein of sending them mass marketing texts, despite their presence on the registry, and despite never having given the retailer permission to bypass this status. These irritated consumers filed a class-action lawsuit, alleging that Shein was in violation of the Telephone Consumer Protection Act (TCPA). In particular, they cited three illegal acts resulting from the mass market texts: an intrusion on people’s seclusion, an invasion of their privacy, and a private nuisance.

The TCPA mandates that all retailers operating in the United States must honor the National Do Not Call Registry, and it clearly establishes that the burden of compliance is on retailers. They are the ones responsible for monitoring the registry and confirming that their practices adhere to the FTC’s standards.

Perhaps the strength of the response reflects consumers’ expectation that they can avoid nuisance calls. But we also might wonder if some of their anger has to do with the source of those calls. Shein has been involved in quite a few legal disputes, including allegations that it copies its clothing designs from other designers and thus violates their copyrights. Furthermore, federal agencies in the United States, Italy, and France have alleged that Shein willfully misrepresents its sustainability practices, such as when it claimed substantial reductions in the amount of microplastics in its clothing and the amount of textile waste it sent to landfills. An investigation by France’s antitrust regulatory body led to sizeable fines imposed on the retailer.

This historical context adds some nuance to the current complaints. The sheer scale and range of misdeeds that Shein has been accused of raise consumer skepticism and a willingness to believe the worst. Maybe if another company sent mass texts, then apologized that it did so in error, people would believe it. But Shein’s growing reputation for misleading communications undermines such goodwill, especially when its past actions indicate that direct monetary fines and losses represent the only incentive that can get it to clean up its act.

Discussion Questions

  1. Should there be a standardized set of regulatory guidelines for all international companies to follow? Which regulations should be standardized? Privacy? Environmental? Which should be left up to each individual nation? Why?
  2. Why would Shein continue to risk damage to its reputation? What benefits does it gain from engaging in such potentially illegal activity?

Sources: Laurel Deppon, “Shein Faces Class Action Lawsuit Over Marketing Texts,” Retail Dive, July 15, 2025; Sara Traynor, “Privacy Bulletin: SHEIN SMS Violates Do-Not-Call Directive, Faces Class Action Lawsuit,” Kaamel, August 18, 2025; “Fast Fashion Giant Shein Hit With Lawsuit Over Shady Marketing Tactics—Here’s What You Need to Know,” The Cool Down, August 8, 2025.

Algorithm Movies and Gourmet Cheeseburgers

24 Tuesday Mar 2026

Posted by in Chapter 10: Marketing Research

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istockphoto / gorodenkoff

A central, frequently touted promise of big data and advanced analytics is that they can personalize offerings so deeply and effectively that they offer each consumer precisely what that person wants at any given time. But observers of recent trends and directions in movie-making, especially by streaming platforms and content developers that rely on such big data, suggest the real outcomes have gone the opposite way, producing far more generic offerings that can apply to everyone.

Although many platforms might be involved in this development, Netflix—with its more than 300 million subscribers, global reach, cutting-edge recommendation algorithms, and vast production capabilities (e.g., it released more than 100 original titles in one recent year)—represents the primary source. Accordingly, it is home to a remarkable number of what might be called “algorithm movies.” These films feature storylines that are easy for viewers to follow, even if they might be doing household chores or browsing social media at the same time as they watch the movie. The sound is designed to be relatively flat, so that people can hear what’s happening whether they are listening through headphones, surround sound speakers, or their mobile devices. Visually, the colors are bright, and feature a lot of yellow (attention grabbing but not gendered), but the images offer a low contrast style. The actors featured tend to be generally appealing but not necessarily top-tier, award-winning stars.

Also known as ambient programming, such algorithm movies aim to appeal to anyone and everyone, regardless of their consumption situation or personal characteristics. Thus, they cannot precisely match any individual consumer’s preferences. In turn, their quality generally gets assessed as middling. They’re usually not terrible, but they also are not breaking any new ground or prompting a creative revival in film. In this sense, like a gourmet cheeseburger, the basic offering is familiar, comforting, and satisfying, offering slightly varied combinations of ingredients without ultimately altering the recipe.

Such content is based firmly and powerfully in the expansive data that Netflix gathers from tracking consumers’ watching habits. The company obtains an estimated 700 billion bits of data, produced by any interaction that a user has with the platform, every single day. Its analyses of these data inform its attempts to ensure the greatest number of consumers are watching the greatest number of titles over time, which it works to achieve by presenting viewers with recommendations and nudges to watch the same content.

In line with these uses of big data to inform content development, Netflix also gauges performance in unique ways that leverage its distinctive market research capabilities. Rather than traditional box office receipts, it counts the total viewing hours that all users devoted to a particular title, then divides that number by the title’s run time. Thus it obtains an average viewing rate that offers a precise indicator of the broad appeal of the content, though again without specifying why each viewer watched or what was uniquely appealing about it.

An ongoing question though involves what algorithm movies really reflect. Is the content getting generalized, because the content creators are seeking the widest audience possible? Or are consumers, who peruse movies while also doing other things, growing more bland in their preferences, such that they are seeking out the gourmet cheeseburger instead of more experimental fare?

Discussion Questions

  1. Do algorithm movies represent an effective use of big data analyses? Why or why not?
  2. How would you answer the questions that conclude this abstract?

Sources: Paul Hoad, “Bland, Easy to Follow, for Fans of Everything: What Has the Netflix Algorithm Done to Our Films?,” The Guardian, August 28, 2025.

Where Layaway Meets the Circular Economy: The Klarna–Poshmark Partnership

17 Tuesday Mar 2026

Posted by in Chapter 03: Social and Mobile Marketing, Chapter 06: Consumer Behavior, Chapter 17: Retailing and Multichannel Marketing

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istockphoto / Wirestock

The concepts of layaway payments and resale markets might seem contradictory, but in today’s marketing landscape, they are joined in reality. When the buy now, pay later service provider Klarna debuted its strategic partnership with Poshmark, one of the biggest digital consignment retailers in the world, the two companies asserted that their collaboration actually represented a natural complement. In particular, both firms tend to attract similar segments of budget-conscious customers. Furthermore, both of them represent first-movers and innovators, which have largely reinvented what were once brick-and-mortar applications for the digital age.

According to Klarna, its goal is to help streamline the circular economy, by facilitating the behaviors that many Poshmark sellers already exhibit. That is, experienced resellers often scour the site, in search of products that are listed at low prices by inexperienced original sellers who do not recognize the value of the items they are listing. The experienced seller then goes on to relist the product at a higher price, sometimes mere moments after purchase. The difference, for savvy resellers, can be a tidy profit.

Such practices are notably unlike traditional consignment markets, such as thrift stores. Digital platforms and quick shipping capabilities enable items to switch ownership multiple times in a short span of time. Efficiency is thus a priority, but for the experienced resellers, the business model can demand a lot of time and effort, much of it quite repetitive. They need to monitor the site constantly to snap up good deals, and then they need to write brand new listings for each product, take new photographs of the items, and measure each part for fit.

It’s at this point in the circular economy that Klarna can introduce a novel opportunity. It grants its existing customers access to Poshmark purchase histories, including the images and listing information used by previous sellers. Therefore, rather than crafting new and appealing descriptions and shooting new glamour shots, they can repost existing content. Furthermore, eligible entries can be leveraged to create templates that then offer suggested wording for subsequent listings of similar items.

To attract first-time sellers to embrace both firms, registrants automatically receive $10 in Poshmark store credit if they also are using Klarna. At the same time, Klarna shoppers are being newly exposed to Poshmark and its offerings.

The novel partnership offers further evidence of Klarna’s and Poshmark’s ongoing determination to achieve first-mover advantages. The resurgent popularity of thrifting first became evident more than a decade ago, but market forecasters predict that the worldwide resale market will continue to grow steadily, and furthermore, e-commerce platforms are predicted to account for the majority of such transactions. By the 2030s, the global consignment market is expected to be more than twice its current size. Especially as global economic anxieties persist, resale markets promise consumers a viable solution to access a wide selection of items, without having to rely on conventional supply chains. Even if they want to purchase the most expensive luxury products that appear on Poshmark, they can do so now, by spreading out the payments over time through Klarna.

Notably, seemingly in an attempt to capitalize on Poshmark’s and Klarna’s shared appeal to consumers of digital-first generations, they announced their partnership right before a back-to-school season, when young parents and college students were likely to be looking for a lot of clothing items but had little cash to spare.

Discussion Questions

  1. Have you ever used a buy now, pay later service? What factors motivated your decision to do so at the time, and how do you feel about that experience in retrospect?
  2. In addition to alleviating economic pressure, what are some of the benefits of consignment markets? Are there any costs?

Sources: Xanayra Marin-Lopez, “Klarna Users Can Now List Past Purchases on Poshmark,” Retail Dive, July 24, 2025; Liz Morton, “Poshmark Partners with Klarna to Streamline In-App Resale,” Value Added Resource, July 22, 2025, https://www.valueaddedresource.net/poshmark-klarna-resale/.

Back Down to Earth: McDonald’s Closes CosMc’s

10 Tuesday Mar 2026

Posted by in Chapter 05: Analyzing the Marketing Environment, Chapter 12: Developing New Products

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We previously presented a new product line introduction by McDonald’s (see “Breaking New Ground: McDonald’s Introduces a New Product Line”), called CosMc’s, a chain of space-themed restaurants with smaller menus than conventional outposts of the fast-food chain. It sought to fill a gap in the market, positioned in between coffee shops and traditional fast-casual restaurants, that would meet younger consumers’ desire for personalized options. But the experiment never took off, and within just a couple of years of opening its five pilot locations, CosMc’s has come to an end. It’s not all bad news though, for the company or consumers. McDonald’s is using the information it gathered to introduce some of the more successful CosMc’s menu items and preparation techniques into its regular stores. By leveraging this intense proving ground, McDonald’s thus gained an opportunity to experiment with different store concepts, without threatening or undermining its core business.

Sources: Jordan Valinsky, “McDonald’s Is Closing Down CosMc’s, Its Beverage-Focused Spinoff,” CNN, May 24, 2025; Amanda Mactas, “McDonald’s Is Closing All CosMc’s Locations—Here’s What You Need to Know,” Delish, May 27, 2025; Ashok Selvam, “CosMc’s Falls From Orbit as McDonald’s Will Close ‘Beverage-Focused’ Spin-Off,” Eater, May 27, 2025.

Got Your Back: JanSport Wins with Corny Campaign

03 Tuesday Mar 2026

Posted by in Chapter 09: Segmentation, Targeting and Positioning

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istockphoto / Jacob Wackerhausen

For students on the move, their backpacks become constant, indispensable companions, never far from reach. They function almost like a good friend, ready and able to offer up snacks, a spare pen to jot down ideas, the notes from last week’s class, gloves on cold days, and some tissues during cold season. Recognizing that a good backpack supplies all the critical tools, devices, food, and educational material a busy student might need over the course of a day, JanSport took the parallel a step further, advertising its backpacks as anthropomorphized companions who are well-suited for preparing kids for the challenges of heading back to school each year.

One popular advertising spot featured animated backpacks that offered deadpan delivery, designed to keep students company during their toughest moments. One awkwardly delivered a cute song in a bathroom stall. Another offered sympathy during a breakup. The odd but emotionally resonant campaign resounded with students, such that consumer interest in JanSport skyrocketed. Measured by online traffic, it rose 65 percent; indicators of consumer engagement jumped 24 percent. And perhaps most important, brand sales increased more than 70 percent.

Thus, when the next year rolled around, JanSport doubled down on its advertising strategy. A television spot highlights two young adults entering an elevator, then riding to their respective floors in polite, awkward silence. Unbeknownst to the humans, their JanSport backpacks have come alive and joined in a corny, off-key duet. In conjunction with the cute campaign, JanSport expanded the available designs for its product offerings, introducing more fun and charming patterns, like leopard and other animal prints and tropical-seeming coconuts.

Although primarily designed for television campaigns, the ads can readily get uploaded as short-form videos for social media platforms like Instagram Reels. Such reactions were notably common among school-aged students, for whom the absurd, surreal quality of the comedic spots aptly matches their own sense of humor. Accordingly, following the elevator campaign, JanSport reported a nearly 400 percent annual increase in overall engagement with its brand.

It is not as if such appeal were obvious, honestly. For decades, JanSport has sought to establish its strong reputation on the basis of its good quality and value. Functional, often limited to solid, drab colors, previous generations of backpacks got the job done, without a lot of humor being evoked. Such a history makes the latest advertising campaigns even more remarkable, indicative of an innovative, dynamic effort to appeal to new generations of students. In adjusting to the needs, humor, and style preferences of young consumers, JanSport sends them a strong signal that it respects and aims to accommodate their preferences.

In this sense, its recent adaptations and marketing campaigns seem to be hitting all the right notes—even if the singing backpacks in its ads can’t.

Discussion Questions

  1. Do JanSport’s latest campaigns authentically and effectively capture Gen Z’s humor?
  2. Suggest next year’s back-to-school advertising concept for JanSport backpacks.

Sources: Jessica Hammers, “Why JanSport Revived Its Cringeworthy Back-to-School Ads to Reach Gen Z,” Retail Dive, July 16, 2025; David Gianatasio, “On Brand, Off-Key: JanSport Backpacks Sing Their Own Praises,” Muse by Clios, June 25, 2025; Diane Bradley, “Which Brand’s Back-to-School 2025 Campaign Is Your Favorite?,” PR Week, August 20, 2025.

Return to Sender: E-Commerce Deliveries Are Failing Customer Expectations

24 Tuesday Feb 2026

Posted by in Chapter 16: Supply Chain Management

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istockphoto / Viktoriia Oleinichenko

Frustration with delivery mistakes, be it damaged goods, delayed service, or costly shipping rates, is a nearly universal experience. Yet consumer dissatisfaction with such outcomes seems to be on the rise, a trend that seemingly reflects consumers’ changing expectations more than it does service providers’ actions.

The very idea of free and same-day deliveries and the guarantee of no-hassle returns might be the norm today, but these remarkable service levels have become possible only recently. Older consumers know what it was like to wait weeks for delivery, expect add-on shipping charges, or get stuck with a less-than-perfect option because the return window had closed. But for Gen Z and younger cohorts, immediate, unquestioned, inexpensive service levels are all they know, and they’re simply not happy with any departure from those new norms.

Surveys indicate that approximately one-third of consumers, across generations, prioritize on-time arrivals over other features. That number jumps dramatically among Gen Z specifically, such that many of them demand quick access, citing it as an even greater priority than affordability. In turn, they express frustration with standard shipping options. For example, when retailers impose shipping costs, introduced only at the end of shopper’s purchasing process, it frequently induces frustration and cart abandonment. Furthermore, buyers complain about a lack of oversight by retailers that lack last-mile logistics capabilities, such that they cannot offer realistic guarantees of a seamless delivery process.

As a result of these increasingly intense and common expectations, many merchants have undertaken revisions to their logistics planning, in a way that can be deeply expensive and detrimental to their overall operations. These threats are especially notable for independent sellers operating in smaller, niche markets, like children’s toys or premium goods.

Yet they also recognize the threat of doing nothing and incurring consumers’ ire. Surveys indicate that, when subject to a delivery mishap, consumers tend to blame the retail merchant rather than logistics or shipping partners. For many shoppers, the logistics simply represent an extension of the seller’s customer service, because the seller is the one that chooses which delivery service to hire. According to this logic, it is ultimately up to the retailer to take responsibility for any delivery issues.

Objectively, and from the retailer’s perspective, such attributions and expectations might seem unreasonable. For consumers though, surprise shipping costs or delivery delays represent failures. These types of failures might prompt consumers to question their own purchase choices, which in turn can lead them into an emotionally precarious state. Their expectations are not met. Their purchase is not complete. They begin to distrust the entire interaction. When the resulting dissatisfaction grows substantial enough, the emotional aftereffects can be so intense that they undermine any sense of brand loyalty and the possibility of future purchases.

The implications for retailers are distressingly clear: They have to find a way to meet even the most unrealistic expectations that consumers develop and promise nearly perfect delivery, or else risk getting left behind.

Discussion Questions

  1. What are some measures that retailers can take to minimize customer dissatisfaction and delivery mishaps, regardless of company size or oversight over the logistics process?
  2. Why might consumers have transferred more blame for delivery mishaps to merchants?

Sources: Michael Brady, “Consumer Ire Over Delivery Mishaps Shifts from Shippers to Merchants,” Retail Dive, July 22, 2025; “E-Commerce Customer Satisfaction–Statistics & Facts,” Statista, December 17, 2025; Marina Mayer, “America’s Largest Online Retailers Experience Gap Between Consumer Expectations vs. Actual Delivery Service Results,” Supply & Demand Chain Executive, September 3, 2025.