What is an example of a misunderstanding in advertising as seen in the case of Pepsi?

The case of Pepsi illustrates a misunderstanding in advertising primarily through the phenomenon of the encoded message differing from the decoded message. This occurs when the intention behind an advertisement does not align with how audiences perceive and interpret that message. For example, an advertisement that aims to convey a message of unity or social progress can be misinterpreted by some viewers, leading to backlash or controversy instead of the intended positive reception.

In the context of advertising, the encoded message is what the brand communicates, while the decoded message is how consumers interpret and understand that communication. This discrepancy can lead to significant misunderstandings that negatively impact brand perception and can even foster negative reactions from the audience. An example is the backlash Pepsi faced with a particular advertisement that was seen as trivializing important social issues, which did not align with the brand's intended message of inclusivity and social awareness.