American Marketing Association has created a code of ethics to be embraced by business owners. One of the critical roles of the association is to ensure that ethical values are embraced. It also ensures that connections, together with trust, are built with customers by ensuring that six ethical values are adhered to. The six ethical values are honesty, transparency, fairness, citizenship, and responsibility, which maintain a connection with customers(Gringarten& Fernández, Calienes, 2019).
One of the codes of ethics is honesty; this is one of the greatest codes that every marketer must-have. Marketers should strive to be truthful in all situations and at all times. One of the examples of being honest is that they should offer products of value that they claim in their communication. They should also stay behind products if they fail to deliver their claimed benefits. More so, they should also sell products of the right quantity and avoid counterfeits. The second code of ethics is a responsibility; they need to strive to serve customer’s needs. They need to be responsible by recognizing special commitments to vulnerable market segments such as economically impoverished, children, market illiterate, and others who are substantially disadvantaged(Gringarten& Fernández, Calienes, 2019). Furthermore, they should protect the environment when offering their products.
Another one is fairness; this code states that marketers need to balance the needs of the buyer with the interests of the seller. They need to represent products in a transparent manner in advertising and other forms of communication, which include avoiding misleading, deceptive, and false promotion. They also need to reject manipulations and sales tactics that harm customers’ trust. Also, they need to protect customers’ private information.Lastly, they need to avoid engaging in predatory pricing, bait, and switch tactics or price gouging (Gringarten& Fernández, Calienes, 2019).
Another one is transparency; they ought to disclose price lists and terms of financing.Moreover,they need to communicate clearly with all constituencies. Also, they need to take appropriate action regarding service risk, significantproduct, component substitutions, and other foreseeable risks that could affect customers in the future.
Laws that protect consumers
The United States also have state and federal laws that regulate consumer affairs. The consumer protection laws are managed by the Federal Trade Commission (FTC) and Bureau of consumer protection(Howells & Weatherill, 2017). Federal law prohibits advertisements that are misleading and untruthful to consumers. An example of an advert that violates consumers’ rights is that of a food company that claims that the food they manufacture is approved by the FDA that prevent babies from allergies. Where in the real sense, they are not authorized by the FDA, and there is no evidence that they prevent allergies.
Another law is the one that governs warranties. Federal law requires that manufacturers must provide clear terms and conditions of warranties. A manufacturer should provide a warranty that is clear, easy to understand and be readily available when product is purchased (Howells & Weatherill, 2017). Consumers have a right to sue manufacturers who do not fulfill obligations stated in the warranty.Consumer’s laws for customer protection provide a way for the protection of customers to fight against abusive business practices. The laws are meant to hold sellers accountable for the goods and services when they seek to profit by taking advantage of customers’ lack of bargaining power or lack of information.
Organizational practices that protect consumers
When it comes to corporate practices, we have several organizations that are meant to protect consumers from exploitative practices. One of the organizations is the Food and Drug Administration (FDA). One of the roles of this organization is to protect public health by ensuring security,safety,and efficacy and ensure the safety of nations’ food supply(Hoofnagle, 2016).Another organization is the Federal Trade Commission, whose role is to implement provisions of the Federal Trade Commission to prohibit deceptive and unfair practices in commerce. It also controls unfair monopolistic practices. Their role is to investigate the company’spractices; they sue organizations that violate the law and come up with rules to ensure a robust marketplace(Hoofnagle, 2016). They also educate businesses about their responsibilities and rights.
One of the companies that I trust the most is Amazon Company. Amazon is an online company that offers a variety of products. I mostly purchase electronics like Television, woofers, and other electrons. I like it because they provide quality products which match their advertising details. I once purchased electric kettle on receiving; it was faulty on returning it they exchanged for me with a functioning one. I like it because it adheres to its warranty terms and conditions. One of the companies that I lost trust with is Wells Fargo. I was once a member of this bank, but I left it when I came to realize its fraudulent activities. I fear my money getting lost since its management is impoverished. Wells Fargo employees created millions of fake accounts, intending to meet quotas handed down from the top. The bank was also found to have charged over half a million customers for car insurance whom they did not need.
Trust that clients have on the business plays a significant role in the success of every business. Trust lost by customers can have detrimental effects on the company from loss of revenue and loyal customers. Once a customer has lost trust in once business, it is necessary to rebuild it.One way of rebuilding trust is through constant communication. People do not love being in the dark, but they like being informed. Secondly,they need to be honest once again. Being honest will make customers trust your product. Incase customers lost trust due to mischievousactivities; they need to get down and find out the real cause of loss of trust and come up with ways to regain it.
Gringarten, H., & Fernández-Calienes, R. (2019). Ethical Branding and Marketing: Cases and Lessons. Routledge.
Hoofnagle, C. J. (2016). Federal Trade Commission privacy law and policy. Cambridge University Press.
Howells, G., & Weatherill, S. (2017). Consumer protection law. Routledge.
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