Ethics and Organizational Issues in Marketing Research

Marketing Research & Ethics Examples of Ethical Dilemmas in Marketing Research Company A gets poor response rates in its mail surveys so uses fictitious letterhead labeled “Public Opinion Research Inc.” (Misidentification) 80% of physicians recommend that consumers use no margarine. Of the remaining 20%, a majority recommend brand A. Brand A’s ads say -- “Recommended by Physicians” (Misinterpretation)

Marketing Research & Ethics Examples of Ethical Dilemmas in Marketing Research ABC Marketing calls customers on the phone to “assess their satisfaction with their current house.” After getting customer opinions, ABC tries to “sell” customers the new siding. (Sales disguised as research) Company X is required by its state’s Public Service Commission (PSC) to assess the impact of a rate increase on low income customers. Company X’s research shows that low-income consumers would be adversely affected by the rate change. When asked by the PSC how the rate change would affect such customers, Company X says they did no research to answer this question. (Misrepresentation)

Marketing Research & Ethics Should Researchers be Concerned About Ethics -- YES! Ethical practices enhance the public’s acceptance of marketing research Ethical practices can improve marketers’ sensitivity to their customers Ethical practices can help forestall government intervention and regulation

Marketing Research & Ethics What Researchers owe Respondents Duty not to engage in deceptive practices Duty not to invade privacy Duty to manifest concern for respondents

Marketing Research & Ethics What Researchers owe Clients Forthright research designs Avoid unneeded research Designs that fit the budget of the clients Researchers’ responsibilities No over billing Confidentiality Eliminate conflicts of interest

Marketing Research What Researchers owe the Public Accurate reporting No incomplete reports No misleading reports Objective Reporting

Organizational Issues in MR Gathering Marketing Research Information Level 1: Organizations have a need for information to help them make decisions Level 2: Research Suppliers Custom and syndicated research providers Design and obtain needed studies Level 3: Data Collectors Field service organizations Personal / Telephone interviewers Focus group facilitators Level 4: Respondents

Organizational Issues in MR Marketing Research Successes Works best when organizations have a commitment to research (top management commitment) View research as in investment (not a cost) Work with Level 2, 3, and 4 organizations as partners Share mission, objectives, etc. Watch for these danger signals Magic techniques (there is no magic) Guaranteed solutions (no guarantees – you are gathering information to help make decisions)

Organizational Issues in MR Marketing Research Successes Watch for these danger signals (continued) Price variance – cheapest may not be the best (but may not be the worst) Making research successful Clear objectives Build relationships with Levels 2, 3, and 4 View research as a process (one study may not get it done)