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PROJECT REPORT ON “ETHICAL ISSUES IN MARKETING

RESEARCH”

SUBMITTED TO : SUBMITTED BY :
Dr.Priyaka khanna ASHPREET KAUR SETHI(6819)
RIDHAM CHOUDHARY(6814)
M.COM(2)
INTRODUCTION
The consideration of ethics in research, and general business is of growing
importance. It is, therefore, critical to understand the basics of ethical research
and how this might affect the research project.

Ethical problems are relationship kinds of problems. That is, ethical problems
occur only when an individual interact with other people and research generally
involves interaction with businesses or members of the general community who
serves as participants (i.e. respondents) in your research.

MEANING OF ETHICS
Ethics is the branch of study dealing with what is the proper course of action for
man. It answers the question, "What do I do?" It is the study of right and wrong in
human endeavors.

ETHICS IN MARKETING RESEARCH


 For each of the six stages of the marketing research design process, the
same four stakeholders (client, researcher, respondent, and public) must
act honorably and respect their responsibilities to one another.

 Researchers must adopt the ethical guidelines of not only the domestic
country but the host country as well.

ETHICAL ISSUES IN MARKETING RESEARCH

MEANING: Ethical issues arise when the interest of the stakeholders are in
conflict or when one or more stakeholder lack responsibilities.

EXAMPLE: If researcher does not follow appropriate marketing


research procedures, or if the clients misrepresents the findings in the
company `s advertising, ethical norms are violated.
KINDS OF ETHICAL ISSUES
1.DECEPTIVE PRACTICES - The ease with which a company can access and gather
data about its customers can lead to deceptive practices and dishonesty in the
company's research methods. This type of ethical problem can run the gamut —
from not telling customers that information is being collected when they visit a
website.
Any action that uses lies and deception to find out or establish information
about consumers falls under this category.

2.INVASION OF PRIVACY - One of the most serious ethical considerations


involved in market research is invasion of privacy. Companies have an
unprecedented ability to collect, store and match information relating to
customers that can infringe on a person's right to privacy.

3.BREACHES OF CONFIDENTIALITY - Companies regularly share information about


customers with partners and affiliates, requiring the customer to opt-out of the
sharing if he doesn't want to be involved. Some companies sell information they
have gathered on customers to outside companies. Ethically, any unauthorized
disclosure of customer information is problematic.

4.OBJECTIVITY - Market researchers have an ethical obligation to conduct


research objectively, so that available data allows for the development of a
balanced or reality-based picture.

For example, a market researcher with a one-dimensional view of minorities


could do a fair amount of harm if allowed to shape an advertising campaign based
on skewed data collection.

5. INCOMPLETE REPORTING – Researcher may not disclose potentially damaging


information about product. Researcher leaving undesirable features about
product or may avoid reporting situational details that are necessary.

For example, researcher may concentrate on that area where network or sale is
strong.
6. MISLEADING REPORTING – Researcher may report in such a manner that the
audience will draw a conclusion that is not justified by the results.

For example, a research firm may report that 65% people preferred brand A
shampoo than brand B shampoo but the firm manufacturing brand A shampoo
quoted in its ad that 65% people preferred brand A shampoo to all other
shampoos.

7. ABUSE OF RESPONDENTS – Frequently interviewed respondents can be a form


of abuse. Long interviews, asking personal or confusing questions, poorly trained
interviewers, hard to read questionnaires etc can be the ethical issues in
marketing research.

8. WRONGLY DATA COLLECTED – Because of wrong size of sample there are


chances that the data collected will not be accurate, because of which end results
will have an error.

9. LACK OF COOPERATION – Sometimes the respondent do not cooperate with


the researcher and not give exact and accurate answers due to which respondent
is not able to collect right data from the respondents. Hence, the whole study
goes wrong.

10. INAPPROPRIATE USE OF TECHNIQUES – Inappropriate use of marketing


research techniques is also an ethical issue. For example, political campaigns.
WAYS TO ENFORCE ETHICAL

CONDUCT

1.MAKE MORAL CONCERN AN INTEGRAL PART OF ORGANISATIONAL GOAL –


Concern for moral or ethical values may be made an integral part of an
organizational goal along with the economic objective of profit maximization. The
employees can then take the right decisions with an eye on fair play decisions.

2.LET CORPORATE ETHICAL STANCE BE REFLECTED IN JOB DESCRIPTION –


The company’s ethical stance may be reflected in the job description of each and
every employee and included in the performance appraisal as well to facilitate
accountability.

3.LET THERE BE CAREFULLY DESIGNED CODE OF CONDUCT AND ITS


ENFORCEMENT – The best way of designing and enforcing ethical responsibility is
to institutionalize it through company constitution. Individual companies are
designing and implementing their own programs imparting their managers
incorporating ethical tinge in the process of thinking and doing the things in their
areas.
MARKETING RESEARCH ORGANISATION HAVING CODE OF
ETHICS
There are two organizations who decide code of ethics to overcome these ethical
issues:

COUNCIL OF AMERICAN MARKETING


ASSOCIATION (CAMA)

MARKETING RESEARCH INTELLIGENCE


ASSOCIATION (MRIA)

COUNCIL OF AMERICAN MARKETING ASSOCIATION (CAMA)


The American Marketing Association commits itself to promoting the highest
standard of professional ethical norms and values for its members (practitioners,
academics and students). As marketers, we recognize that we not only serve our
organizations but also act as stewards of society in creating, facilitating and
executing the transactions that are part of the greater economy.

In this role, marketers are expected to embrace the highest professional ethical
norms and the ethical values implied by our responsibility toward multiple
stakeholders (e.g., customers, employees, investors, peers, channel members,
regulators and the host community).

ETHICAL NORMS
As Marketers, we must:

1. Do no harm. This means consciously avoiding harmful actions or omissions


by embodying high ethical standards and adhering to all applicable laws
and regulations in the choices we make.
2. Foster trust in the marketing system. This means striving for good faith
and fair dealing so as to contribute toward the efficacy of the exchange
process as well as avoiding deception in product design, pricing,
communication, and delivery of distribution.
3. Embrace ethical values. This means building relationships and enhancing
consumer confidence in the integrity of marketing by affirming these core
values: honesty, responsibility, fairness, respect, transparency and
citizenship.

ETHICAL VALUES
Honesty – to be forthright in dealings with customers and stakeholders. To this
end, we will:

 Strive to be truthful in all situations and at all times.


 Offer products of value that do what we claim in our communications.
 Stand behind our products if they fail to deliver their claimed benefits.

Responsibility – to accept the consequences of our marketing decisions and


strategies. To this end, we will:

 Avoid using coercion with all stakeholders.


 Acknowledge the social obligations to stakeholders that come with
increased marketing and economic power.
 Recognize our special commitments to vulnerable market segments such as
children, seniors, the economically impoverished, market illiterates and
others who may be substantially disadvantaged.

Fairness – to balance justly the needs of the buyer with the interests of the seller.
To this end, we will:

 Represent products in a clear way in selling, advertising and other forms of


communication; this includes the avoidance of false, misleading and
deceptive promotion.
 Reject manipulations and sales tactics that harm customer trust.
Refuse to engage in price fixing.
 Avoid participation in conflicts of interest.
Seek to protect the private information of customers, employees and
partners.
Respect – to acknowledge the basic human dignity of all stakeholders. To this
end, we will:

 Value individual differences and avoid stereotyping customers or depicting


demographic groups (e.g., gender, race, sexual orientation) in a negative
way.
 Listen to the needs of customers and make all reasonable efforts to
monitor and improve their satisfaction on an ongoing basis.
 Make every effort to understand and respectfully treat buyers, suppliers,
intermediaries and distributors from all cultures.

Transparency – to create a spirit of openness in marketing operations. To this


end, we will:

 Strive to communicate clearly with all constituencies.


 Accept constructive criticism from customers and other stakeholders.
 Disclose list prices and terms of financing as well as available price deals
and adjustments.

Citizenship – to fulfill the economic, legal and societal responsibilities that serve
stakeholders. To this end, we will:

 Strive to protect the ecological environment in the execution of marketing


campaigns.
 Give back to the community through volunteerism and charitable
donations.
Contribute to the overall betterment of marketing and its reputation.
 Urge supply chain members to ensure that trade is fair for all participants,
including producers in developing countries.
MARKETING RESEARCH INTELLIGENCE ASSOCIATION (MRIA)
MRIA should decide the following code of ethics:

IN PROTECTION OF RESPONDENTS

1.The MRIA will limit the collection of personal information to that which is
necessary for the purposes identified by the MRIA. The MRIA will collect personal
information by fair and lawful means.

2.The MRIA will not use or disclose personal information for purposes other than
those for which it was collected. Moreover, it will retain that information only as
long as necessary for the fulfillment of those purposes.

IN PROTECTION OF CLIENTS

1.PROTECTION AGAINST UNQUALIFIED RESEARCHERS – The researcher should


not commit his services to a client if his capabilities do not match those that the
research project demands.

2. PROTECTION AGAINST MISREPRESENTATION OF RESEARCH METHOD – It is


the right of the clients to demand a detail description of the research methods
and it is duty of researcher to supply the information accurately.

3.PRIVACY AND CONFIDENTIALITY – The information generated by a particular


project are the exclusive property of that client and should not be use or disclosed
to any other clients without permissions of the original clients.

IN PROTECTION OF RESEARCHER

There should be ethical use of findings. There should not be any unethical
practice that harm the reputation of research firm.
SOME OTHER CODE OF ETHICS

Researcher should not force


Protection or confidentiality
any respondent for
of data.
answers.

In case of sensitive or
personal Proper, unbiased and
questions,researcher should accurate information
give time to respondent to collection
think or quit

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