FUD stands for Fear, Uncertainty, Doubt.
It is a marketing technique used when a competitor launches a product
that is both better than yours and costs less, i.e. your product is no
longer competitive. Unable to respond with hard facts, scare-mongering
is used via 'gossip channels' to cast a shadow of doubt over the
competitors offerings and make people think twice before using it.
In general it is used by companies with a large market share, and the
overall message is 'Hey, it could be risky going down that road, stick
with us and you are with the crowd. Our next soon-to-be-released
version will be better than that anyway'.
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