Demarketing strategy to develop perceived product reputation: applications in three distinct environments

This paper illustrates ‘demarketing’ and its uses to improve product image in the customers’ viewpoints. Three events stimulated the investigations. First, a leading political party lost local municipal elections in a large South Africa metropolitan. Second, a reputable soccer club lost many fans to other teams. Thirdly, a local confectionary lost clients. Investigations took place in the three settings (soccer, politics and confectionary business). The respondents were known clients or fans of the original entities, who had defected to rivals. A questionnaire was used to collect data. The entities apparently ignored the services promised to clients. Despite them being dissimilar entities, similarities occurred in the way they lost favor with their clients. The study identified demarketing as a common factor. Demarketing was applied by the rivals, and was imbedded in their policies. People and entity representatives’ used demarketing strategies to lure clients. The paper recommends that demarketing should be applied to control the market. Also, it recommends that agile competitors should augment normal marketing with demarketing to optimize marketing results.

Keywords: demarketing strategy, demand, perception, product quality.
JEL Classification: D47, M14, M31, M37