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Unit 2: Consumer Research

Whatever the reasons for unethical instances, what is necessary after the issue is identified is that Notes
marketing managers must decide how to resolve it. This requires knowing most of the ethical
issues related to marketing that often arise. In general, most issues relating to unethical behaviour
occur in case of products and promotions.
Product-related ethical issues may include little or no information about safety, function, value,
or use instructions. One example can be used of inferior materials, or components to cut costs
without any information to customers. It is ethically wrong not to inform customers about the
changes in product quality, as this failure is apparently a form of dishonesty. Issuing false
medical certificates is unethical for medical practitioners as it raises questions about their honesty
in general.
Promotion of products and services, etc., often furnishes a number of instances of a variety of
situations that involve ethical issues, such as false and misleading advertising, and manipulative
or deceptive sales promotions. There have been instances of misleading ads about obesity
control and weight reduction programmes that mislead customers - and some went to the
courts. Many ads are criticised for using excessive nudity to attract an audience. Use of bribery
or false promises in personal selling situations is an ethical issue. Occasionally, media reports
highlight cases of unethical practices by organisations involved in offering bribes to procure
large orders. Such practices damage trust and fairness and ultimately harm the concerned
organisation and tarnish its image.
When a firm behaves ethically, the consumers tend to develop positive attitude about the firm,
its products and services. When the marketing activities deviate form socially acceptable
standards, they become less efficient and sometimes they are even halted midway. Resorting to
unethical marketing practices may change consumer perception towards a brand and may lead
to dissatisfied consumers, negative publicity, lack of trust, loss of business and in extreme cases
legal action. Thus, most of the companies are very sensitive about the needs, interests and
opinions of the consumers and look to protect their long-term interest. Moreover, these ethical
abuses more often lead to greater pressure from the society and government for companies to
assume a greater sense of responsibility for their actions. Consumer interest groups, professional
bodies and self-regulatory groups exert considerable influence on marketing activities of the
companies. Increasing importance for social responsibility initiatives have also subjected
marketing activities to a wide range of federal and state regulations designed to protect consumer
rights and promote trade.

Example: 1. Fair and Lovely, skin whitening cream marketed in India by Hindustan
Unilever, has constantly used an advertising strategy that depicts women of darker complexion
as being inferior (the most controversial being such women being unable to find a suitable
groom). Fair & Lovely has played in well to exploit the race/color insecurities that has plagued
Indian society for centuries, to sell skin 'whitening' creams. This shows that how big companies
like HUL, make ethical sacrifices for marketing their products.
2. A survey was held on advertisements by hospitals in US. Major hospitals like Johns Hopkins'
medical center, Harvard-affiliated Massachusetts General Hospital, the University of Chicago
Hospitals and Vanderbilt University's medical center were included in the survey." We do
Botox!" one analyzed ad proclaims. Another depicts a spilled cup of coffee symbolizing a woman's
heart attack - potentially evoking fear in a tactic more commonly associated with pharmaceutical
ads than respected hospitals. Of 122 ads designed to attract patients and published in newspapers
in 2002, 21 promoted specific services, including Botox anti-wrinkle injections and laser eye
surgery. Only one of the 21 ads mentioned the risks. Most of the 122 ads - 62 percent - used an
emotional appeal to attract patients. This attracts patients but they are still unaware of the side
effects of such specialized services.

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