Ethics and Organizational Issues in Marketing Research

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Ethics and Organizational Issues in Marketing
Research
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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 As ads say --
  Recommended by Physicians (Misinterpretation)

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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 states Public
  Service Commission (PSC) to assess the impact of
  a rate increase on low income customers. Company
  Xs 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)

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Marketing Research Ethics

• Should Researchers be Concerned About Ethics --
  YES!
• Ethical practices enhance the publics acceptance
  of marketing research
• Ethical practices can improve marketers
  sensitivity to their customers
• Ethical practices can help forestall government
  intervention and regulation

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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

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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

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Marketing Research

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

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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

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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)

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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)