Running head: CHAPTER 10 ASSIGNMENT 1

Chapter 10 Assignment

Travis Johnson

Georgia Southwestern State University

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Chapter 10 Assignment

QUESTION 1

Green marketing is the selling of products or services by highlighting the benefits of the

product to the environment. The movement started in 1990 when consumers became aware of the

fact that the environment was being damaged by human business activities. There are quite a few

names for this marketing concept, such as ‘organic,’ ‘eco-friendly,’ ‘recyclable,’ ‘sustainable,’

and many others. Some of the primary goals for this type of marketing can be: implementing

those business practices that are sustainable and demonstrating social responsibility to reduce

expenses such as (packing, transport, energy usage, and many others). These changes in business

processes came only after people began to realize that the initial message from companies of

caring about and protecting the environment was a façade. The fourth name, sustainable,gives

the idea of how safe and mindful the products and services are [ CITATION Mar12 \l 1033 ].

There are both sides of the picture, and one of the primary reasons why these movements

have been affected and faced negativity is because of some business that tried using it as an

opportunity to raise their prices and get people away with it.Already the customers were wary of

the false claims made by companies regarding their products being environmentally friendly. The

movement was manipulated in many ways. Companies did not actually implement

environmental-friendly policies in their strategy, which could lead to the overall business being

less harmful to the environment. Firms cited economic reasons for not doing that, which I think

was a myopic view of the company.

Question 2

Understanding the basic concept of relationship marketing is very important. What

exactly is relationship marketing, it is a strategy used to foster customer loyalty, interaction, and
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long-term engagement. It is a way to promote open communication by providing them answers

to their needs and wants of the products that they use. Now the terms loyalty, interaction, long-

term engagement are of great importance where ethics are supposed to police all these concepts.

Though there are endless benefits of it, if we look at the ethical issues that may arise if there is

not a strong relationship between the customer and the firm, they are humungous. If there is a

gap between these ideas and ethics, then surely that won’t be working in favor of the

organization. For instance, if your cashier keeps favoring a specific customer every time they

come to checkout whether there is a long queue or not, and upon asking, he says it is approved

by the management.

A number of ethical issues arise in relationship marketing like customer’s privacy.

Companies take data now more than ever of their customers. They do that for all sorts of

commercial reasons like targeted marketing,but the potential for misuse is colossal. Not only

would marketers exploit that private information of customers for their marketing, but also it is

often sold to third parties, which one never knows what might use it for. There have been

complaints of identity theft and hacking in the past, and the potential for other crimes by people

who might get that data is huge [ CITATION Flo10 \l 1033 ].

Question 3

From the history explained in our text that how the word boycott came into the English

language, it is evident how impactful boycotts are. When Charles C. Boycott was ruthlessly

unfair to the Irish tenant farmers, they conjured up such an innovative way of reversing the

decision that it still is widely practiced today against unjust behavior.Some claim that boycotts

started when Aristophanes imagined it in Lysistrata.By the end of 1880, the word boycott had

moved into the English language dictionary after being used widely by English
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newspapers.Boycotts target specific brands or products to put a stop to its purchase for a wide

range of reasons.

Whether the boycott is on the level of street, town, cities, nationwide or international, the

thing that counts the most in its success or failure is how justified and concrete the reason for the

boycott is [ CITATION Dou04 \l 1033 ].Boycotts are useful because they directly hit the bottom

line of the shareholders or owners of the company. Hence, the management is forced to take

action on the demands of the party initiating the boycott, which is usually an NGO or a rights

group, etc. there are numerous examples of very successful and impactful boycotts in history. An

example of a consumer boycott is the boycott of British sales of cloth in India during usurpation.

Question 4

Johnson & Johnson’s nightmare with a horrible experience with their Tylenol capsules is

one of the most essential studies in business. For recalls, it has become a standard, like a dollar

used to be pegged with gold like gold. In 1982, when someone infected Johnson & Johnson’s

capsules with cyanide, they recalled all of their stock of the product from all markets. It was not

a mistake or any negligence from Johnson & Johnson’s side; it might have been an agent of any

competitor or just someone with a horrible desire for the death of a lot of people. Yet Johnson &

Johnson withdrew all of its marketing of Tylenol and took the responsibility of bringing back the

capsules from everywhere.

Johnson & Johnson’s prompt and positive reaction to the situation is very commendable.

They took the burden of losses of a hundred million dollars, knowing that most probably they

were not going to be covered by insurance. That is precisely what happened; the insurance

company was not liable to pay the money for the recall because Johnson & Johnson had not

insured Tylenol against the recall. The reason why Johnson & Johnson tried to save the
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prohibitive cost for Tylenol’s recall might be that they did not think of something like that

happening. But almost everyone lauded the decision of Johnson & Johnson of pulling back its

product even after being found not guilty for the tragedy it caused [ CITATION Pet2 \l 1033 ]

Question 5

There can be numerous reasons why product recalls happen, some of which can be:

 The first reason is a design flaw in the product

 The second reason is a production defect

 The third reason for a recall occurs when new scientific information is released to the

public that links dangers in the product or materials that were not previously known to

the firm or the public.

 The fourth reason is accidental contamination of the product occurring during the

manufacturing process.

 The fifth reason is product tampering.

 The sixth reason occurs when there is an unforeseen misuse of the product by consumers

 The seventh reason is the product’s failure to meet the safety standards established by a

governmental regulatory agency

Question 6

Numerous costs are involved in recalling a product. Investigation costs are the costs

incurred in finding out that something bad happened and what it is. Communication costs are the

costs of informing all the concerned persons of the decisions of the recall. Physical distribution

costs are the ones that a company has to bear in managing the operations of getting the products

back from the market to the company.

 Labor costs
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 There are costs to legally dispose of the recalled products

 The cost of lost sales and profitability because of the decrease in demand for the recalled

product

 Costs to pay the government and fines and penalties related to the recalled product.

Question 7

Purchasing ethics isbased on the relationship of the parties involved in transactions. This

means that the ethical decision comes down to the regular procedures according to which trade is

usually conducted in the countries that are taking part in the transaction. The question of whether

the purchase managers should be allowed to accept gifts from suppliers or not can have a simple

answer of one word; No. It is not very practical, though, as anyone can provide the commercial

manager with incentive, as the people giving that favor would like to call it, in any form. There is

not exactly an efficient way by which companies can know.According to AmitSaini, inter-

organizational power, inter-organizational relationships, and interpersonal relationships are the

three concepts on which unethical activities between purchasers and suppliers are based on.

Question 8

Smoking was depicted as having positive impacts on one, whereas nothing can be farther

from the truth. Australia passed laws against the big adverting companies of big tobacco

companies. It was innovative, for the lack of a better term, for the tobacco companies to give

WW2 soldiers cigarettes in their food rations. This marketed cigarette smokers to be tough and

rugged. These marketing campaigns by tobacco companies were below the belt as they wanted to

use a tragedy such as a war for their profit. The same goes for encouraging women to smoke, the

intent of the marketing campaigns of the 1960s. Smoking is terrible for everyone, but it is
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particularly damaging for the fairer gender because they are to borne offspring. Hence these

campaigns very ethically wrong.

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References

Goodman, D. J., & Cohen, M. (2004). Consumer Culture: A Reference Handbook. California.

Peter A. Stanwick, S. S. (2016). The Ethical Challenges of Product Recalls. In S. S. Peter A.

Stanwick, Understanding Business Ethics (pp. 200-200). CA: Sage.

Schools, M. (2012). Green marketing. Retrieved 4 1, 2020, from marketing-schools.org:

https://www.marketing-schools.org/types-of-marketing/green-marketing.html

Siems, F. U., Bruton, J., & Moosmayer, D. C. (2010). Integrating Core Marketing Ethical Values

Into Relationship Marketing. Journal of Relationship marketing , 68-82.