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QUESTION
Consumer Behavior
Assignment Week 8a
Marketing Ethics & Misbehavior
We learned this week that marketing ethics is defined as the societal and professional standards of right and fair practices that are expected of marketing managers as they develop and implement marketing strategies. Many organizations have explicitly stated rules or codes of conduct. The American Marketing Association has also created a Code of Ethics. All of these tools have been designed to protect the consumer. Research 3-5 laws, organizational practices, or ethical codes that impact businesses and protect consumers. Describe each one and provide a discussion about how they are used to protect consumers. Provide an example. At the conclusion, provide a discussion of companies you trust and distrust, and discuss why. What can a business do to re-gain your trust once it has been lost?
Assignment Requirements:
- Write between 750-1000 words per question using Microsoft Word
- Be sure when constructing your paper, you incorporate concepts from the chapter and/or lecture to show your understanding of the topic.
- Use font size 12, 1” margins and double spaced.
- Include cover page & reference page (if needed)
- At least 80% of your paper must be original content/writing
- No more than 20% of your content/information may come from references.
- Use at least three references from outside the course material, one reference must be from EBSCOhost. Textbook, lectures and other materials in the course may be used but are not counted toward the three reference requirement.
- Cite all reference material (data, dates, graphs, quotes, paraphrased words, values, etc.) in the paper and list on a reference page in APA style.
References must come from sources such as scholarly journals found in EBSCOhost, CNN, online newspapers such as The Wall Street Journal, government websites, etc. Sources such as Wikis, Yahoo Answers, eHow, blogs, etc. are not acceptable for academic writing.
Please click on the links below view this week’s chapter slideshows:
ANSWER
Marketing Ethics and Misbehavior
Introduction
Ethical codes or codes of practice are a compilation of rules that dictate the allowed conduct of businesses and the industry at large. They form a set of guidelines that ensure dealings with the customers are conducted in a fair way. They also help in the creation of a bond of trust with the customers, as they realize that the business cares about them. Codes of ethics may either be mandatory, to ensure a minimum level for the protection of customers, or voluntary, acting as a form of self-regulation. Voluntary codes are flexible and can be changed to respond to a change in consumer needs. Mandatory codes are enforced by bodies such as the government to ensure consumer protection and fair trade.
Ethics and Consumer Protection
There are many generally agreed upon codes of ethics existing in the business world, to control marketing operations and ensure consumer protection. Businesses create their own codes and are sometimes bound by business regulations formulated by bodies such as trade unions. Honesty is one of the ethical practices that are adhered to be marketers. Honesty in business dealings and information given in marketing is very beneficial to companies, as it creates trust in the consumers. Consumer trust results in a boom in the sales of a product. Marketers use labels and price tags to display information about their products. Labels are a huge way of product marketing. Businesspeople use attractive labeling to advertise goods to their target market. The ethical code of honesty ensures that marketers only portray honest and truthful information. It protects the consumers from businesspeople who may be dishonest so as to boost their sales by giving dishonest information praising their products on their labeling. This code also ensures that customers acquire enough information to enable them to make informed decisions on goods.
Respect to consumers is another ethical requirement for marketing. Marketing activities ought to be conducted in a way that acknowledges the dignity of customers by ensuring proper communication and fulfillment of their needs. This value gives consumers the right to being listened to when giving product feedback. It also dictates that customers’ needs have to be considered during policy decisions and making of products. Products need to fulfill the needs of customers, and customers should be listened to when making any complaints or queries regarding products. Respect value protects consumers from possible exploitation by salespeople and businesses through the sale of products that are poor quality or even defective (Gershon & Buerstatte, 2003). Customers can lodge complaints to the authorities, on any businesses that may be selling defective goods, and action taken against them.
Protection of personal information is vital in marketing. During various marketing activities and promotion efforts, marketing executives acquire information that may be personal about their target or existing customers. This information may be the customers’ addresses, residences, age, preferences, occupations, monthly pay, etc. Customers give this information expecting marketers to keep it to themselves and not expose it to other individuals. Businesspeople have an ethical obligation to keep information about customers private, as exposure may result in security problems, and diminish customer loyalty.
Businesses are expected to seek a balance between their interests and those of their customers (Khan et al, 2015). Fairness ensures the creation of a good reputation for a business and prevents manipulation. Customers should not be manipulated or forced to make purchases. They should be allowed to choose freely, and even sample different products before making a purchase decision. It is the duty of all marketing executives to provide a variety of products in the market and allow the consumers to make their choice of the product that best suits their needs. It is also their duty to ensure proper pricing and disclosure of information about the products offered. This ethical value protects consumers from unfair pricing and manipulation by marketers. It also ensures that they access quality products at the best prices in the market. Social responsibility is also an ethical obligation of businesses. Firms such as Apple Inc. and Costco enjoy customer loyalty and trust as a result of continued focus on social responsibility.
Conclusion
Marketers need to observe ethics in their business operations, as they go hand in hand with the agreed upon consumer rights. Protection of the customers is important to ensure that they feel comfortable when purchasing and enjoying the products offered by businesses. Customer trust and loyalty are crucial for any business that wishes to expand their market and profitability. A good example of a company that has really placed its focus and efforts towards ethical compliance is Apple Inc. It has also excelled at social responsibility, boosting its image in the American market. The company has made and executed programs that ensure compliance with ethical values and responsibility on their part. Programs such as supporting the local communities through scholarships and volunteer programs, and offering equal employment opportunities to both genders have helped Apple attract very many customers (Khan et al, 2015).
The company also provides the best care and service to its customers, having retail centers where customers get an opportunity to get assistance using Apple products and customer service. The staff at the service centers are friendly and treat customers with dignity. It is, therefore, a company that I trust. The Wells Fargo Bank is at the top of the list of companies that I do not trust. According to a Fortune Magazine article on Wells Fargo Bank (Colvin, 2017), the bank was caught up in lawsuits for conducting business in an unethical manner, destroying documents that were regarded as incriminating and even firing employees that had reported unethical methods of operations. It was also reported that the bank had been opening unauthorized accounts, resulting in funds embezzlement and creation of fake documents. These unethical practices resulted in a hefty fine of $185 million, and loss of millions of customers. The bank would have to adhere to strict regulations and ethics, and maybe change its management to acquire y trust as a customer again. Adherence to ethical values avoids such problems, as loss of customer trust results in losses.
References
Fortune Magazine article: Colvin, G. (2017). The Wells Fargo Scandal Is Now Reaching VW Proportions
http://fortune.com/2017/01/25/the-wells-fargoscandal-is-now-reaching-vw-proportions/?iid=sr-link3
Gershon, H. J., & Buerstatte, G. E. (2003). The E in Marketing: Ethics in the Age of Misbehavior. Journal of Healthcare Management, 48(5), 292-294. doi:10.1097/00115514-200309000-00004
Khan, U. A., Alam, M. N., & Alam, S. (2015). A critical analysis of internal and external environment of Apple Inc. International Journal of Economics, Commerce and Management, 3(6), 955-961.
