Ethical marketing and community engagement

Overview

Recall questions on unethical pricing, misleading promotions and hidden fees, targeting vulnerable customers, transparent pricing, community engagement, employee volunteer programmes, local sponsorship and criticisms of corporate charitable giving.

What you need to know

Answer each one before you reveal it.

Questions from this subtopic

Each one with the model answer underneath.

1. 1

   What makes a pricing decision unethical rather than simply commercial?

   Model answer

   It exploits customers who cannot judge or avoid it, for example by raising prices sharply during an emergency or hiding compulsory charges until the final step.

2. 2

   What is meant by a misleading promotion?

   Model answer

   A misleading promotion creates a false impression of a product's price, quality or availability, even where each individual statement in it is technically true.

3. 3

   Give one example of an ethically questionable promotional practice.

   Model answer

   Advertising a discount against a previous price at which the product was never realistically sold.

4. 4

   A business advertises a low headline price and then adds compulsory fees at checkout. Explain two consequences.

   Model answer

   Customers abandon their purchases and trust in the brand falls, and the practice can attract regulatory action and damaging press coverage.

5. 5

   Why is targeting vulnerable customers regarded as an ethical issue?

   Model answer

   Some groups, such as children or people in financial difficulty, are less able to judge a claim or resist pressure, so the exchange is not a fair one.

6. 6

   Explain one commercial benefit of transparent pricing.

   Model answer

   Customers who are not surprised at checkout complete more purchases and return more often, so lifetime value rises even where the headline price looks higher.

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