ETHICAL DILEMMA #1

Marketing Research Insights was asked to carry out the data-collection and analysis procedures for a study
designed by a consumer goods company. After studying the research purpose and design, a consultant for
Marketing Research Insights concluded that the design was poorly conceived. First, he thought that the design
was more complex than was necessary, inasmuch as some of the data could be obtained through secondary
sources, precluding the necessity of much primary data collection. Second, the proposed choice of primary data
collection would not produce the kinds of information sought by the company.
Although the consultant advised the company of his opinions, the company insisted on proceeding with the
proposed design. Marketing Research Insights' management was reluctant to undertake the study as it believed
that the firm's reputation would be harmed if its name was associated with poor research.
1. What decision would you make if you were a consultant for Marketing Research Insights?
2. In general, should a researcher advance his or her opinion of a proposed design, or should the researcher
remain silent and simply do the work?
3. Is it ethical to remain silent in such situations?
ETHICAL DILEMMA #2
Prompted by an increasing incidence of homes for sale by owner, the president of a local real estate company
asks you to undertake exploratory research to ascertain what kind of image realtors enjoy in the community.
Unbeknownst to your current client, you undertook a similar research study for a competitor two years ago and,
based on your findings, have formed specific hypotheses about why some homeowners are reluctant to sell their
houses through realtors.
1. Is it ethical to give information obtained while working for one client to another client who is a
competitor? What should you definitely not tell your current client about the earlier project?
2. Is it ethical to undertake a research project when you think that you already know what the findings will
be? Can you generalize findings from two years ago to today?
3. Should you help this company define its problem, and if so, how?
ETHICAL DILEMMA #3
The promotions manager of a soft drink company asks you to help him run an experiment to determine whether
he should start advertising in cinemas showing movies rated R or NR-17. He explains that he has read a journal
article indicating that viewers' responses to upbeat commercials are more favorable if the commercials follow
very arousing film clips, and he believes that his soft drink commercial will stimulate more sales of the drink in
the cinema if it follows previews of very violent or erotic films, such as are shown before the feature film.
1. If you ran a laboratory experiment for this client, what kinds of manipulations would you use and what
are the ethical issues involved in their use?
2. Is it feasible to run a field experiment, and would the ethical issues change if a field experiment were run
rather than a laboratory experiment?
3. If you found that increasing viewers' arousal levels did indeed make them more favorably disposed
toward products advertised through upbeat commercials, what are the ultimate ethical implications for
influencing television programming?
ETHICAL DILEMMA #4
A marketing manager for a dog food manufacturer stumbled onto an important piece of competitive intelligence
while visiting a local printer near his company's plant. While waiting to speak with the salesperson that handled
his company's account, the manager noticed some glossy advertising proofs for one of its competitor's products.
The ad highlighted some new low prices. When he mentioned the prices to the printer, he was told that they
were part of a new advertising campaign. On his return to headquarters, the marketing manager called a
meeting of his company's management. As a result of that meeting, the company initiated a preemptive,
price-cutting campaign of its own that effectively neutralized the competitor's strategy.
1. Did the marketing manager act ethically in reporting the information back to his company?
2. Would your judgment be different if the proofs were in a folder and the marketing manager casually and
somewhat inadvertently opened the folder while standing there? What if he did so on purpose after
noticing that the folder pertained to the competitor?
3. Should information like this be entered into the firm's decision support system?

ETHICAL DILLEMMA #5
Maps, Inc., is the marketing research division of a large credit card company. The division specializes in the
preparation of geodemographic maps. To prepare these maps, it combines information from customers' credit
card transactions with the demographic data it collected when the customers applied for a credit card. Then,
with its profiles of who is purchasing what, in combination with Census data on small geographic areas, Maps,
Inc., is able to develop maps that display by zip code area the potential market for various types of products and
services.
The company in turn sells this information to various manufacturers, wholesalers, and retailers after
customizing the data to the geographic boundaries specified by the client.
1. Is it ethical to use credit card transaction information in this way?
2. Do the credit card users have a right to know this research is being conducted?
3. Should it be necessary for Maps, Inc., to get signed releases from individual card holders before
incorporating the individuals' purchase transactions in the data base? What might happen to the quality
of the data with the requirement of signed releases?
ETHICAL DILEMMA #6
Toys-4-Kids, a major toy manufacturer, wishes to monitor changes in its sales, market share, and household
penetration through the establishment and maintenance of a panel of households having children ages 12 and
under. The households will be asked to record their purchases of all toys and games. Jean Blue, the marketing
research director, believes it will be best to withhold the sponsor's name when recruiting households for the
panel. She thinks that if the panel members know the research is being conducted by Toys-4-Kids, their
reporting behavior could be biased.
1. If the panel members are volunteers, do they have a right to know who is sponsoring the panel?
2. If they are compensated for their participation, do they have a right to know who is sponsoring the
panel?
3. Do you think a household's reporting behavior will be biased if the household knows Toys-4-Kids is
sponsoring the research?
ETHICAL DILLEMA #7
A marketing research firm was hired by a candy manufacturer to gather data on the alternatives consumers
consider when deciding to buy a candy bar. Sue Samuelson, the person in charge of the research, believed that
the best way to collect accurate information was through an observation study done in major supermarkets,
drugstores, and discount stores in a number of large cities. Unfortunately, at that time the personnel of the firm
were stretched to the limit because of a number of other assignments. The company simply did not have
sufficient personnel available to do the study using personal observation and still meet the client's deadline.
Samuelson consequently decided that she would propose to the client a mail study utilizing the research firm's
panel of households. Not only would this place fewer demands on the research firm's personnel, but the cost to
the client would be about 25 percent less than with personal observation.
1. Does Samuelson have an obligation to the client to disclose why she is recommending the mail panel?
2. Is it ethical for a research firm to use alternative methods of gathering data because of internal
constraints? What if the alternatives reduce the charges to the client?
3. Who should make the decision as to the best way to approach the project--the client or the research
supplier?
ETHICAL DILEMMA #8
Susan Black has been given the assignment of measuring the quality of service provided by her employer,
Valley Bank. She welcomes the assignment for several reasons. One important reason is that she saw a scale
for measuring a bank's image in a recent issue of a bank trade magazine. She plans to use the scale as is. That
will take care of the measurement issues, leaving only the sampling issues (e.g., who to sample, how many,
how, and so on) with which to grapple, thereby simplifying the task.
1. Before using a scale of this type, does Black have any responsibility to investigate its reliability and
validity properties?
2. Can she simply assume that because the scale has been published it is good? What are the publisher's
responsibilities in this regard?
3. What if Black has no formal training in measurement? What should she do?