week 11

Question 1

Some unethical marketers may use their knowledge of consumer behaviour
to exploit consumers
• Understanding what is (and is not) ethical marketing is therefore important
• Two key perspective in ethics:

Answer 1

Teleological theories

‒ Deontological theories

Question 2

explain teleological theory

Answer 2

The moral worth of behaviours are determined by their outcomes

• Utilitarianism is one form of teleological theory
‒ Moral actions are those that bring the greatest good for the greatest
number ‒ Allows for the fact that it is not always possible to please everyone when
making an ethical decision

Question 3

explain deontological theory

Answer 3

Some behaviours cannot be justified by their outcomes; their intrinsically
good or bad, regardless of their consequences
• Kant’s categorical imperative is one form of deontological theory
‒ A categorical imperative is a rule that is true in ALL circumstances ‒ Individuals should be willing to have their actions become universal laws that apply equally to everyone, not just themselves

Question 4

unethical behaviour by firms - precision targeting

Answer 4

Consumers’ loss of privacy is an increasingly pressing ethical issue ‒ Consumers are tracked on the web by companies (example: Quantcast)
so that companies know who is visiting their websites ‒ Consumers may unwittingly disclose private information through social
media (example: Dave, the mind reader)

Question 5

explain manipulating the consumer (forced exposure)

Answer 5

james bond - aston martin

Often involves blurring the
distinction between figure and
ground

• Makes it difficult for consumers to
distinguish between advertising
and entertainment content ‒ Example: product placement

Question 6

define unconsiable conduct

Answer 6

Unconscionable conduct occurs when a strong party takes unfair advantage
of its superior bargaining power ‒ Example: high-pressure sales techniques ‒ Example: taking advantage of a consumer’s poor language skills

Question 7

explain deceptive advertising (unconsiable lies)

Answer 7

Deceptive advertising involves explicit or implied claims or omissions that
are likely to ‘mislead a consumer acting reasonable under the
circumstances’ ‒ Unconscionable lies: completely false claims are made intentionally

Question 8

define unconsionable lies

Answer 8

Unconscionable lies: completely false claims are made intentionally

Question 9

define decepive advertising (claim fact discrepencies)

Answer 9

Deceptive advertising involves explicit or implied claims or omissions that
are likely to ‘mislead a consumer acting reasonable under the
circumstances’ ‒ Claim/fact discrepancies: where qualifications to the claim are omitted,
resulting in misrepresentation

Question 10

explain deceptive advertising claim belief advertising

Answer 10

Deceptive advertising involves explicit or implied claims or omissions that
are likely to ‘mislead a consumer acting reasonable under the
circumstances’ ‒ Claim/belief discrepancies: no deceptive claim is explicitly made, but a
deceptive belief is created