Ethical Issues

Topics: Marketing, Ethics, Supermarket Pages: 4 (896 words) Published: March 7, 2011
Ethical issues in ParknShop

ParknShop was founded in 1973 and now, has become one of the largest supermarket chains in Hong Kong , which has more than 200 stores and 9,000 employees in Hong Kong.

ParknShop’s marketing activities have been criticized for long time. This paper will firstly examines two of the most severely unethical issues in ParknShop’s marketing strategy, and then provides some fessible suggestions to these problems. Finally a brief conclusion will be drawn.

ParknShop' s Unethical Marketing Activities

Deceitful advertising practices

ParknShop regularly churn out and advertise a dazzling array of promotional packages and discounts, claiming that they are offering the lowerest price in the town.[1]

Nevertheless, ParknShop is not really offering a real discount and the lowest price to the customers in most case. On April 15, 2009, Consumer Council released a report stating that in most cases, the discounts and promotinal packages were not what they appear to be but mere promotional sale tactics to lure customers into buying and buying more.[2]

The analysis cited, as an example, the case of the price movement of a popular brand of canned beer 330ml in a promotion.

Having raised the price in rapid succession, later on the same day (November 15), Parkn shop offered a promotional package priced at $12.3 for 2. However, the promotional unit price of $6.15 (at $12.3 for 2) was actually $0.25 ($6.15 - $5.9) or 4.2% higher than the individual selling price prior to the price escalation immediately before the promotion. ParknShop's advertising practices is misleading the customers.

Product mislabeling

In January 2007, ParknShop was involved in a food scare that they was accused of having mislabeled oilfish and sold it as the more expensive codfish. The scare broke out after the Centre for Food Safety of Hong Kong had received complaints from 14 people who fell ill after consuming oil fish said to have been wrongly...
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