Post on 02-Jun-2018
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Advertising & Marketing Ethics Assignment
Brenda Edmund Fiona Kuan Loong Yi Hui
G12
17 October 2014
Ethics & Social Responsibility
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Question 1 Part I
Should the law ban targetedadvertisement, especially in thecase of children?
Question 1 Question 2 Question 3
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What are Targeted Advertisements?
Advertisements that reach certain consumers
based on various traits such as demographics,psychographics, behavioral variables (such as
product purchase history), and other second-
order activities which serve as as proxy for these
traits.
Question 1 Question 2 Question 3
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Clarification
Children: under 12 years old
Focus on Commercial Advertisements: a formof communication with the intention ofpromoting the sale of particular productattached to a brand.
Question 1 Question 2 Question 3
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Recap on Irrational Persuasion
Question 1 Question 2 Question 3
Irrational persuasion occurs when the
advertisement irrationally persuades by denyingindividuals their autonomy.
This is done through the exploitation of deep-seated emotions or sense perceptions.
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Arguments for Banning
Childrens cognitive abilities are poorer and
more susceptible to advertisersirrationalpersuasion.
Psychologists have found that children from 3-7years old gravitate towards toys that transform
themselves into something else.e.g. McDonaldshappy meals
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Macdonalds Video
Question 1 Question 2 Question 3
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Arguments for Banning
Children tend to want products
regardless of their prices and suitability.
They will realize their wants by usingtheir pester power to make their
parents agree to buying the productfor them.
Question 1 Question 2 Question 3
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Is Targeted Advertising Ethical basedon the Kantian Theory?
Question 1 Question 2 Question 3
Maxim: Sellers can promote their products in any
way to children even if it distorts their choices .
Principle of Universality: inefficient allocation of resources.
Principle of Humanity:
o Children are treated as a means to an end.
o Impedes childrens autonomy and impairs their parentsrationality.
UNETHICAL
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Argument Against Banning
Question 1 Question 2 Question 3
Advertisements provide information
about the product. They let the audience, who are children
in this case, know more about the
products in the market.
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Is Targeted Advertising then Ethicalbased on Rule Utilitarianism?
Question 1 Question 2 Question 3
Rule: Sellers can have advertisements thatinform children about their products.
The rule can hold, as it promotes the efficientallocation of resources in society.
ETHICAL
However, do these advertisements really only giveinformation and not distort choices of the children?
No, there is often irrational persuasion in place to
entice the children.
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Our Stand
Advertisements targeted atchildren should be banned.
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Question 1 Part I
Should advertisements be allowed,
for example, in school premises andschool buses?
Question 1 Question 2 Question 3
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What are the Types of Advertisements?
Commercial Advertisements-Children targeted thatirrationally persuade children.
Public Service Advertisementsthose that come witha message concerning public interest.
Question 1 Question 2 Question 3
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Are the Advertisements Ethical basedon Rule Utilitarianism?
Maxim: Advertisements can be carried
out on platforms of educationalinstitutes.
Mills Relative Qualities:
o Children targeted commercial advertisements willgenerate a lower pleasure.
o public service advertisements that promote publicinterest will generate a higher pleasure.
Question 1 Question 2 Question 3
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Are the Advertisements Ethical basedon Rule Utilitarianism?
Question 1 Question 2 Question 3
Children TargetedAdvertisements
Public ServiceAdvertisements
Students Happy Happy
Parents Unhappy Happy
Sellers Happy Happy
Public Unhappy Happy
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Our Stand
Question 1 Question 2 Question 3
Only Public Service Advertisements
should be allowed, in schoolpremises and on school buses.
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Question 1 Part II
Are there other categories in the
general population who should betreated separately in matters relatingto advertisements?
Question 1 Question 2 Question 3
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What is it Meant by Treated Separately?
Question 1 Question 2 Question 3
To be exceptionally careful when advertisementsappeal to these groups of people.
These groups are more vulnerable than thegeneral population.
Hence, sellers should reconsider if they want to
specially target these groups in theiradvertisements, and care has to be taken if theydecide to do so.eg elderly larger front size
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Which Groups should be Treated Separatelyfrom the General Population?
Question 1 Question 2 Question 3
Elderlyo Eyesight disadvantage: Fine print
o Irrational persuasion specially to mattersregarding health and youthfulness
o Example: Commercials that suggest using a
product can make you younger
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Example of Elderly TargetedAdvertisements
Question 1 Question 2 Question 3
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Which Groups should be Treated Separatelyfrom the General Population?
Question 1 Question 2 Question 3
Addicts
Rational thinking ability impaired due toaddiction
Especially vulnerable to products that they areaddicted to as they could not resist temptation.
Loss of autonomy
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Example of Addict TargetedAdvertisements
Question 1 Question 2 Question 3
Irrationally persuades alcoholaddicts that this beer willallow them to be as fast andpowerful as Liu Xiang.
This misleads them into
buying more alcohol whenthey are already addicted.
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Based on Kantian Theory, why mustthese groups be treated separately?
Maxim: Sellers can make use of
advertisements to take advantage of
consumers fear or irrational considerations.
Principle of Universality: the maxim cannot be universalised. If allsellers did this, the targeted customers will buy products they do notactually need, resulting in an inefficient allocation of resources.
Principle of Humanity: These people are have a more vulnerablemind. Their rationality is impaired when producers specifically tailoradvertisements to exploit their deep-seated emotions and wants.Buyers are treated as a means to an end to generate more profit.
Question 1 Question 2 Question 3
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Our Stand
It is unethical to distort choices of these
groups of consumers. Sellers should be very careful if they want to
target them in advertisements, or choose tonot target these groups at all.
As it is hard to justify advertisement aretargeted at addicts, there should be a banon advertisement that promote addictiveproducts e.g cigarettes
Question 1 Question 2 Question 3
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Question 2
Some 20 years ago, Volvo used TV and printadvertisements depicting a monster BearFoot
truck going over the roofs of various cars ofdifferent makes, with only the Volvo surviving.
Discuss and comment on the above case. In
particular, how ethical do you think Volvo was?Please give your reasons.
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Volvos Case Background
Case of Deceptive Advertising:
A monster truck rides atop the
roofs of the cars lined up itspath.
Only the Volvo car is leftstanding when a monster truckrolls over all the cars.
Illustrated the companysadvertising message of strengthand safety.
Question 1 Question 2 Question 3
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What is Deceptive Advertising?
Deception occurs when a false belief,
which an advertisement either createsor takes advantage of, substantiallyinterferes with the ability of a person tomake rational consumer choices.
Question 1 Question 2 Question 3
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When does Deceptive Advertising Occur?
Deceptive Advertisements can come in theform of:
False Statements
Propositions with figurative interpretations
Half-truths
Question 1 Question 2 Question 3
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Volvo s Deceptive Advertising Modes
Untrue Statements
Half-truths
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Volvos Half-Truth
Volvo initially intended this advertisement to be adramatization of a similar stunt that occurred in Vermont.
This advertisement was then released without informing theconsumers that it is a re-make of the actual event itself.
The silence conducted here by Volvo in not stating thisadvertisement is a dramatic remake of the stunt amounts to
a half-truth. (Half-Truth)
Question 1 Question 2 Question 3
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Volvos Irrational Persuasion
This advertisement creates fear in consumers with thegraphical image of crushed cars and promises to fulfil
certain human needs with the owning of a Volvo wagon.
The needs are:
Emotional Security:Volvo wagon not being crushed after a few run-overs
from Bear-Foot.
Ego-Gratification/Sense of Power:Volvo wagon withstanding the weight of Bear-Foot.
Question 1 Question 2 Question 3
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Are Volvos Actions Ethical based on
the Kantian Theory?
Fails to inform consumer of the scene recreationand consumer led to believe that Volvo cars are
generally strong. Comparison of safety standards between car
models which is material to rational car buyers
purchase decision becomes flawed.
Fails Principle of Universality & Humanity
Question 1 Question 2 Question 3
UNETHICAL
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Volvos Ethical Arguments
Volvo denies knowledge of
rigging.
Alterations to the cars were toenable the production crew toconduct the demonstration
safely and to allow Volvo towithstand the repeated runs ofthe monster truck.
Question 1 Question 2 Question 3
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Maxim: Employers should ensure that workplace
conditions are safe for its employees and personnel
involved in its business dealings.
Principle of Universality: all employers should guaranteesafe working conditions as much as employees areobliged to protect employers interests.
Principle of Humanity: employer is treating employees asan ends by ensuring their safety.
Are Volvos Arguments Ethical based on
the Kantian Theory?
Question 1 Question 2 Question 3
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Rebuttal to Volvos Arguments
Question of Universality
Customers are also stakeholders in thisbusiness dealing(advertisement).
Their comparison of safety standards betweencar models is taken for granted in exchange
for employees safety.
Question 1 Question 2 Question 3
UNETHICAL
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Similar Cases in Advertising
Question 1 Question 2 Question 3
Ice-Cream Mashed Potatoes
Similarity Appearance in the advertisement
Difference Melts easily underthe studio light in
the set of theadvertisement
Does not meltunder the studio
light or any otherconditions.
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Similar Cases in Advertising
Question 1 Question 2 Question 3
Difference in whether it will melt in studio conditionsis not material to the rational consumers purchase
decision for an ice-cream. Rational consumers would expect it to melt after
some time under normal circumstances.
Therefore, modification will not affect his decision.
ETHICAL
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Question 3
There are many slimming services, hair re-growthand weight loss products being marketed inSingapore. Can you find a generally ethical
example, and another which you view to bemuch more unethical? Your examples should befor similar products/services.
Apart from general principles covered in your text,you may also like to use the guidelines stated inthe Singapore Code of Advertising Practice toassist you. Please justify your decision ascomprehensively as you can.
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Slimming CentresAre they Ethical?
Advertisements
Guarantee Claims
Pricing
Question 1 Question 2 Question 3
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Slimming Advertisements
Question 1 Question 2 Question 3
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Slimming Advertisements
Question 1 Question 2 Question 3
Being plump is unfavourable in society as depicted by thewoman who had problems in her work and family due toher plump figure.
Implicit societal effect of manipulating a sense of worth andself-esteem based on your figure.
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Does this go against the SCAP?
Question 1 Question 2 Question 3
Despite negative implications of this video, it is not inviolation of Singapore Code of Advertising Practices
(SCAP). It was a genuine experience of a customer who had
undergone LWM treatments.
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Is this Ethical based on RuleUtilitarianism?
Rule: Business can use advertisements to distortpeoples perception of their personal needs.
Question 1 Question 2 Question 3
Stakeholders Reaction Reason
Current & potentialobese customers
Unhappy Decrease in self-esteem
Public Unhappy Perpetuate social stigma againstfat people
London WeightManagement
Happy Higher sales
UNETHICAL
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Question 1 Question 2 Question 3
Slimming Advertisements
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Is this Ethical based on the RuleUtilitarianism?
Rule: Sellers can use advertisements toprovide information that can help customers
make a rational purchasing decision.
Question 1 Question 2 Question 3
Stakeholders Reaction Reason
Customer Happy Information on benefits in makinga rational purchase
Public Happy Information on benefits in makinga rational purchase
Slim Couture Happy Higher sales
ETHICAL
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Slimming Advertisements
Question 1 Question 2 Question 3
The nice footage depicting the pretty ladyenjoying her treatments may lead to irrational
persuasion through exploiting sense perception,which is slightly unethical
Overall, it is ethical as the main focus and aim oftheir advertisement was to inform customers of
their treatment benefits
ETHICAL
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Guarantee Claims
Question 1 Question 2 Question 3
Both brands claimto give 100%guaranteed results,or customers will
get their moneyback.
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Guarantee Claims Issue
The guarantee statements are vague half-truths.
Both firms do not qualify what they mean by results orexplain how much money they will return the client ifthere are no results achieved.
It may end up with a situation where the customer will beunable to get her money back despite a lack of
satisfactory or significant results.
Hence, there is an issue of deceptive advertising withhalf-truths here.
Question 1 Question 2 Question 3
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Is this Ethical under the Kantian Theory?
Question 1 Question 2 Question 3
Maxim: Retailers can leave out certaininformation or terms that can materially affect
consumers purchase choices.
Principle of Universality: the maxim cannot beuniversalised as consumers may purchase servicesthey do not need and it leads to an inefficientallocation of resources.
Principle of Humanity: Customers are treated as ameans to an end and these half-truths impair therationality of the customers.
UNETHICAL
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Does this go against the SCAP?
Guarantees give the impression that thetreatments will definitely work.
Question 1 Question 2 Question 3
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Does this go against the SCAP?
The remedial action (money back) is not clearly
defined in the advertisement. Limitations to the results guaranteed are not stated
clearly either.
Guarantee claims do not go in line with the SCAP.
Question 1 Question 2 Question 3
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Pricing
Question 1 Question 2 Question 3
$28 for 10 slimmingtreatments.
3-piece fat-burningset as a free gift.
The original price isquoted to be $668.
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Transparent Pricing Issue
The $28 deal only covers the first few slimmingtreatments.
The cost of the rest of the subsequent treatmentsare not stated.
Tactic of Luring: to entice the customer with acheap initial deal, before selling a much higherpriced full package.
Question 1 Question 2 Question 3
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Is this Ethical based on the Kantian Theory?
Maxim: To gain more business, retailers can discounttheir services initially and not disclose their subsequent
high charges to customers.
Principle of Universality: the maxim cannot beuniversalised as if all sellers did that, there will be a lack oftrust between buyers and sellers.
Principle of Humanity: Buyers interests in discounted itemsshould not be taken advantage of to treat them as ameans for profit rather than an end.
Question 1 Question 2 Question 3
UNETHICAL
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i i i
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Did that go against the SCAP?
Although unethical, what LWM did was not againstthe SCAP.
The customer did get to enjoy the first 10 treatmentsat $28 in the end.
Question 1 Question 2 Question 3
Q ti Q ti 2 Q ti 3
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Pricing
No discount gimmicks. Full treatment schedules are stated clearly.
Prices stated are to be paid upfront before customers start anytreatments.
Question 1 Question 2 Question 3
Q ti 1 Q ti 2 Q ti 3
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Is the Pricing Ethical based on the
Kantian Theory?
Question 1 Question 2 Question 3
Maxim: To gain more business, retailers candiscount their services initially and not disclosetheir subsequent high charges to customers.
Sellers are unethical for using discounts to lure customers asthe above maxim cannot be universalised.
Here, Slim Couture does not lure to gain more business.
Respects customers autonomy and rationality to decide ifthey want to purchase the package at the fixed price.
ETHICAL
Q ti 1 Q ti 2 Q ti 3
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Conclusion
Question 1 Question 2 Question 3
is more ethical than
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THANK YOU