Targeting Uninformed Consumers Research Paper

When companies target consumers who are uninformed, they feed lies to the consumer, tricking them into buying something that they didn't want or even need. An example is when fast-food restaurants advertise a humongous burger. A consumer is intrigued with the size of this burger.But when they eventually purchase this burger, they are unsatisfied with the comparison of the advertisement and the actual product.

An unethical issue arises when an advertisement focuses on people who do not know about the information about the product, as well as its side effects, and the advertisement tries to misleading them. An example of unethical consumer sovereignty practice is the marketing of infant formula to those unknowledgeable mothers living in less developed nations during 1960s and 1970s. Those advertisements tried to promote the infant formula by sending out milk nurses, who were actually sales persons dressed up in nurse uniforms, to demonstrate the product and recommend those mothers to feed their babies with the infant formula. They misled the fact that breastfeeding is a better alternative choice. As the result of being uninformed mothers, higher numbers of sick and malnourished babies were reported due to the drop of breastfeeding and over blending the formula (Nwachukwu et al., 1997). Hence, it is unethical to market on unknowledgeable group of people as this kind of advertisement fails to reveal the true fact that the consumer should know.

Bernard Maddoff was entrusted by his family, close friends and his close associates, most of which he hired to work in his company. As with many businessman, positions previously held, are used to persuade others to trust in their business. Maddoff used the “family business” and esteem gained as the former chairman of the NASDAQ Stock Exchange to convince people to trust him and invest their money with him (Stanwick & Stanwick, 2016). It is a proven fact, trust is essential, when operating or starting a business that involves successfully building clientele, especially when involving large sums of money. Once trust has been obtained, greed becomes present and links both sides. Maddoff and his investors, both craved to earn more money than an average investment. Scams or schemes would not exist without greed and is the reason why they will exist for years to come (Stanwick & Stanwick, 2016).

Even they could be selfless and tell them not to do it or help the person. One example is when the king and the duke, created a fake religious ceremony to get money. The way they got money, was when “... The king went all through the crowd with his hat, swabbing his eyes, and blessing the people and praising them and thanking them for being so good to the poor pirates away off there;”(Twain 132). The king and the duke tricked the people in believing they were pirates who were robbed to get money. This was greedy, because they were acting glorious and sad to scam money from people, who didn’t do anything. The king and the duke made it worse when they created a show, that was horrible. Just to get money from the people, because they advertised it as a good show. What they did was greedy. Then the people who went to the show thought that since they were scam, that they would tell other people it was a good show. The people did this, because if i were scammed, you had to scammed to. This was very greedy, because the people could’ve been nice to other people, so they didn’t lose money. This just shows people at the time, most of them are greedy and they always had to steal money or make sure people who didn’t get scammed, be scammed so they weren’t the only that lost money. Mark Twain showed through his satire, that greed and

The things people are willing to do for money are horrible and very selfish. According to www.newser.com 10% of the people are willing to enter into a sham marriage for $100,oo0 and 15% would fake their own death for $100,000. The thing people do for money is very disturbing because, they are willing to get into a bunch of trouble and most likely end up in jail, and lose everything for that money. People don’t think about what they're getting into when they do those things and they lose everything just because of that money that will be gone in no

What is right or wrong? People base their values of right and wrong on what they have learned from their experiences (Ferrell, Fraedrich, & Ferrell, 2018). What one person sees as wrong, may be a normal for another. Most people are taught to work hard, save money, and invest for a future retirement. However, when it comes to money, some people lose all principles and standards of behavior. There were several ethical issues in the Madoff case. They include: stealing, cheating, lying, misrepresentation, and deliberate deception. Madoff used the Ponzi scheme or the money pyramid to make his money. In the Ponzi scheme, money was taken from new investors and given to existing customers as earning without being invested. Was this right or wrong? Throughout this case study ethical concerns can be seen on both sides, the investors and Madoff’s.

It is important to first gain an understanding of the various types of fraud, in order to aid understanding in regards to the prevention of fraudulent activity. This paper begins with a review of the definition of financial fraud, and identification of the different fraud types. Further, included is an examination of what motivates individuals to commit fraud, including an identification of some of the method in which people commit fraud. A discussion of the importance of the fraud triangle, and how rationalization contributes to fraud is a key area of focus. Finally, there is an examination of some controls that prevent and detect fraudulent behavior, including the value and importance of understanding the nature of fraud for

many of them put this approach aside when it comes to managing their customers . Once the product is sold,

For example as the article stated consumers from a urban Chicago neighborhood receives finger-hut catalogs where they’ll pay higher prices due to paying in installments opposed to purchasing directly from a retailer such as a Victoria secret catalog. When the consumer was asked why would they purchase directly from a retailer opposed to a company like finger-hut the consumer replies because I’m not sure how much money I’m allowed to save being on welfare I just brought it from finger-hut paying twice the price of the

3. The marketing tactics in the case include payments, gifts and other financial lures to doctors and government officials, off-label uses of drugs, overpricing of the drugs resulting in the higher costs of Medicaid and Medicare programs and false advertisement. All of these marketing tactics have resulted from the desire to increase revenue and profits for the firm. Although the main focus of a business is to maximize profits, these marketing methods have resulted in harm to the society and have resulted in unethical behavior. The direct-to-consumer advertisements can be justified to an extent. Through this the industry educates the public about various drugs and their benefits, it could help educate the general population, and in a world

From the Pharmaceutical industry perspective direct-to-consumer advertising builds a sense of trust between consumer and drug manufactures; as well as providing consumers with knowledge of illnesses and treatment options. The Pharmaceutical Companies feel that exposing viewers/readers to a high level of symptoms it will prompt the consumers will create and open dialog with their physicians about their health issues, due to the advertisement consumers are aware of side effects allowing them under the guidance of a licensed physician make the best suitable drug option (DeGeorge pg320).

Being the fastest growing crime of today, it is estimated that every 79 seconds an identity is stolen (Consumer Reports 13). Empty promises made by solicitors in spam e-mail offer a free gift in exchange for personal information. These solicitors have no intention of sending any free gifts, but their scams help them obtain the private information desired. If enough information is given, criminals are able to apply for credit cards, apply for a fraudulent loan under the victim’s name, and make illegal withdrawals from random bank accounts. This is only one of the many ways a person’s identity could be stolen (O’Reilly).

Darrow observes that while certain criminals are behind bars because they have obtained money under false pretenses, newspapers are full of deceptive advertisements, yet those who place them often trade freely. Darrow is right that some people enjoy the right to trade under false pretenses because people accept their deceptions as mainstream, while other people are thrown in jail for participating in similar activities.

Moneymaking scams are becoming very popular in recent years. One would like to believe some things in life are sacred. Religion is where billions of people invest their hopes, dreams, beliefs, and most importantly,

2. “Helping” you start your very own home-based business, as a mystery shopper, network marketer, or others businesses where the only money anyone sees is the money the scammer pockets.