FUD is generally a strategic attempt to influence perception by disseminating negative and dubious or false information. An individual firm, for example, might use FUD to invite unfavorable opinions and speculation about a competitor's product; to increase the general estimation of switching costs among current customers; or to maintain leverage over a current business partner who could potentially become a rival.
The term originated to describe disinformation tactics in the computer hardware industry but has since been used more broadly. FUD is a manifestation of the appeal to fear.
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