Ethical Issues in Marketing (AQA A Level Business): Flashcards
Exam code: 7132
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Define ethics in marketing.
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Cards in this collection (14)
Define ethics in marketing.
Ethics in marketing refers to the moral principles that guide how a business promotes and sells its products.
True or False?
If a product meets all UK legal safety requirements, the business has met its full ethical responsibility.
False.
The Consumer Rights Act and product safety regulations set a legal framework, but ethical businesses go beyond what the law requires to keep customers safe.
Define planned obsolescence.
Planned obsolescence is the deliberate design of products to become outdated or stop working after a period of time, forcing consumers to buy replacements sooner than necessary.
Why is the fast fashion industry criticised on ethical grounds?
Fast fashion produces large volumes of low-cost clothing that is worn briefly and discarded. This contributes to textile waste and often relies on low-paid labour in developing countries.
Define greenwashing.
Greenwashing is making exaggerated or false environmental claims in advertising to attract environmentally conscious consumers, without evidence to back those claims up.
Ethical concerns arise when products known to cause harm are marketed aggressively towards children or ________ groups.
Ethical concerns arise when products known to cause harm are marketed aggressively towards children or vulnerable groups.
Define price gouging.
Price gouging occurs when a business dramatically raises prices during a crisis or emergency, taking advantage of consumers who have no choice but to pay.
Define predatory pricing.
Predatory pricing is setting prices deliberately and unsustainably low, often below cost, to drive competitors out of the market, after which prices are raised.
How can a business unethically exploit price-inelastic demand?
When consumers have no real alternative, such as the only treatment for a serious illness, demand is price inelastic. The business can then charge very high prices with little impact on the quantity sold.
True or False?
Shrinkflation is technically legal in the UK, even though many consumers see it as deceptive.
True.
Shrinkflation means reducing the size or quantity of a product while keeping the same price. It is technically legal, but it is effectively a hidden price increase.
Which body is the independent regulator for UK advertising?
The Advertising Standards Authority (ASA) is the independent regulator for UK advertising. It investigates complaints and can require misleading adverts to be withdrawn.
True or False?
Advertising that reinforces harmful stereotypes is only unethical if it breaks the law.
False.
Advertising that reinforces damaging stereotypes is increasingly considered unethical even where it is not illegal. Since 2019, ASA rules have banned adverts that portray harmful gender stereotypes.
Paid promotional content by influencers must be clearly ______, typically with #ad or #sponsored.
Paid promotional content by influencers must be clearly labelled, typically with #ad or #sponsored.
Why is using customer data for targeted promotion an ethical concern?
Consumers may not genuinely understand or consent to how their data is used. Highly specific adverts on sensitive topics, such as health or finances, can feel intrusive and raise concerns about manipulation.
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