Reference no: EM131399000

Ethical issues may arise Most retailers face intense competitive pressure. The desperation that comes with such pressure has pushed some retailers toward questionable marketing practices. Critics argue, for example, that retailers too often advertise special sale items to bring price-sensitive shoppers into the store or to a website but then don’t stock enough to meet demand. Other retailers are criticized for pushing consumers to trade up to more expensive items. What is ethical and unethical in situations like these, however, is subject to debate. Retailers can’t always anticipate demand perfectly, and deliveries may not arrive on time. Similarly, trading up may be a sensible part of a strategy—if it’s done honestly. Retailers are gathering and using information to offer customers a more personalized shopping experience, which appears consistent with the marketing concept. But is it ethical to monitor customers’ shopping behavior without their knowledge? Do retailers need customers’ permission? Does it depend on how this information is used? The marketing concept should guide firms away from unethical treatment of customers. However, a retailer on the edge of going out of business may lose perspective on the need to satisfy customers in both the short and the long term. Agree? Explain?