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Chapter Objectives
LEARNING OBJECTIVES
LO1 Identify why marketers should be concerned
about ethics
LO2 Describe the characteristics of a socially
responsible firm
LO3 Explain how a firm could make ethically
responsible decisions
LO4 Outline how ethics & social responsibility can
be integrated into a firm’s marketing strategy
LO5 Identify how consumers foster ethical and
socially responsible business practices
17-1
LO5
The Six Tests of Ethical Action
The Publicity Test
• Would I want to see this in the media?
The Moral Mentor Test
• Would the person I admire the most do this?
The Admired Observer
Test
• Would I want the person I admire the most to SEE
me doing this?
The Transparency Test
• Could I give a clear explanation for the action
The Person in the
Mirror Test
The Golden Rule Test
• Would I be able to look in the mirror and respect
myself
• Would I like to be on the receiving end of this action?
17-2
LO5
Understanding Ethics Using Scenarios
Scenario 1: Who Is on the Line?
Scenario 2: Giving Credit Where Credit Isn’t Due
Scenario 3: The Jeweler’s Tarnished Image
Scenario 4: No Wonder It’s So Good
Scenario 5: Bright Baby’s Bright Idea
17-3
LO5
Scenario 1: Who Is on the Line?
• What are the ethical
issues in this scenario?
• Why would a firm use
this service?
• How do you think
consumers will respond
to firms who use this
service?
• Would you advise
purchasing this service?
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17-4
LO5
Scenario 2: Giving Credit Where
Credit Isn’t Due
• Is this an
inappropriate target
market?
• Could you argue that
the firm provides a
valuable service to
this market?
• Would you advise the
cataloger to pursue
this new strategy?
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17-5
Scenario 3: The Jeweler’s
Tarnished Image
LO5
• Is the manufacturer responsible for the acts of
independent sales people?
• How do you feel the Billing’s should respond?
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17-6
LO5
Scenario 4: No Wonder It’s So Good
Relax with
Enjoy Cola
• Is the legal non
disclosure of the
alcohol content and
ethical issue?
• Should the firm be
required to disclose
the alcohol content?
• What would you do if
you were Mia?
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17-7
LO5
Scenario 5: Bright Baby’s Bright Idea
• Is the potential for injury
enough to merit
removal of the product
from the market?
• Do you feel it is ethical
to move the product to
a less regulated
market?
• What would you have
advised the CEO?
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17-8
LO5
Ethical and Social Criticisms of Marketing
* High Prices
* Deceptive Advertising
* High-Pressure Selling
* Exaggerated claims
* False Wants/Materialism
* Cultural Pollution
* Bait-and-switch
17-9