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The Hong Kong Polytechnic University

MM2711 Introduction to Marketing

Individual Assignment on Marketing Ethics

Student Name: Ching Hong Yan, Shirley

Student ID: 12082678D

Study Programme: BBA (Financial Services) Year 1

Tutorial Group: TUT004 (Wed 13:30)

Introduction

In recent years, marketing ethics has been much more in our concerns as the marketing activities often create some ethical dilemmas due to the conflicts of interests. With the assistance of moral principles and values, companies should act rightly and justly when faced with moral dilemmas. In this essay, in order to interpret and understand the ethical problem in the marketing aspect, the act of MTR Corporation Ltd. (MTR) fare increase would be studied and analyzed. After analyzing the problem, few advices would be given for modifying the marketing strategy of MTR.

Ethical Issue

Since 1975, MTR has started operating a mass transit railway system for meeting the public transport needs in Hong Kong. During these many years, MTR has always been criticized by the general public with regard to the managerial problem, such as the inefficiency of handling the accidence. Meanwhile, this is not the one mostly concerned by citizens. In every recent year, MTR increased the fare even though it has a huge profit and this act has directly increased the citizens’ burden especially during the economy downturn.

In 2012, MTR continued to increase the prices based on the fare adjustment mechanism using a formula that combines the consumer price index and transport wage rises. MTR explained the reason why it has to increase fare is that the fare discounts and concessions are costly to the company. However, even if MTR tried to put forward several reasons, the act of increase fare still has been criticized as an unethical pricing because the total profit of MTR in 2011 is as high as 14.7 billion. MTR also has been criticized that it can have a...
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