Preview

Marketing Ethics

Good Essays
Open Document
Open Document
613 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Marketing Ethics
Marketing Activities -----Groupon Hong Kong Groupon is a deal a day websites, it provides a newly developed business model that offer group coupon per day. The companies provide the coupon of services and products with discount and it works as assurance contract. That means only if the number of people who sign up for the group coupon meet the minimum, the deal will become available. However, there are sharply increasing number of the complaints against the products of the group buying websites in Hong Kong .Groupon Hong Kong as the biggest group buying company, still being criticized as companies without ethical marketing in Hong Kong.
This essay has facilitated the discovery of the ethics of Cadbury’s marketing activities. The discussion is mainly focused on marketing ethical of the products of the Groupon Hong Kong. The products will be analyzed based two ethical values which are responsibility and transparency with according to American Marketing Association (AMA).

http://hk.apple.nextmedia.com/template/apple/art_main.php?iss_id=20110701&sec_id=4104&art_id=15391305

Responsibility:

Groupon Hong Kong failed to accept the consequence of their marketing decision and strategies. On early September Groupon Hong Kong offers group coupon that customers only need to pay 148 for buying Mint Design shoes which priced $400 in the market. However, it fails to provide products to customers within the committed date as the product was shock out. Although there are many customers claimed to refund, the Groupon did not give any properly responds to customers. Instead of refund to customer Groupon offer another model shoes to customers and titled “upgraded service” without any reason and the agreement of the customers.(Apple Daily Newspaper 2011) The Groupon fail to provide products as they did not set the limit for the coupon appropriated with the inventory of the Mint Design and refuse to deal with the customers’ complaints. Instead of serve the customers

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Groupon differs from other couponing sites in the sense of the approach taken to advertise the businesses featured on it’s site. The creators of this e-coupon…

    • 534 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Groupon Essay Example

    • 1234 Words
    • 5 Pages

    Groupon is an internet website company focused on generating revenue by utilizing relationships with merchants to provide consumers with discounts on select items. The goal of the discounted vouchers is to drive additional consumer store traffic and generate revenue for merchants which are shared with Groupon via a predetermined contractual percentage. Groupon generates visibility and exposure with email and social networking to increase consumer spending at specific merchants. Groupon has many features from personalization of product offerings to specific demographics and target segments. In addition, a more defined value proposition allowing merchants an opportunity to showcase their own product offerings on the Groupon website. Groupon stands behind every discount voucher sold and distributed. If the consumer is not 100% satisfied the company will provide a refund or financial credit for a future Groupon opportunity. Groupon began with a focus on major city markets and increasing email subscriptions to provide the required visibility to aggressively sell the discounted vouchers.…

    • 1234 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Groupon

    • 385 Words
    • 2 Pages

    Groupon is a deal-of-the-day recommendation service for consumers. Every 24 hours, Groupon broadcasts an electronic coupon for a restaurant or store in our city, recommending that local service while also offering a 40% to 60% discount if purchase that service. Groupon is a middleman service that promotes our city's restaurants and stores. Groupon encourages people to try a different restaurant or store each day, and earns a commission whenever they successfully refer a customer.…

    • 385 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    The only way for Groupon to succeed in sustained merchant growth in the long term is to separate itself from the competition by being able to innovate. There is some opportunity for customer retention by teaming up with large supermarket corporations through the use of loyalty cards. (Conlin, 2011) This is an effective strategy as they do actually have big marketing budgets that they might be looking to minimize by giving out coupons.…

    • 617 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Groupon is a website is a deal of the day website that features discounted gift certificates usable at local or national companies This method is highly effective as a lot of big business use this method and have had huge success. This method has a lot of advantages here are some of them. Firstly it attracts a lot of consumers. You can reach new customers by appealing to those who are looking for inexpensive deals and a chance to save money. Groupon promotions offer the most assistance for businesses in which the promotion does not cannibalize sales to current customers. Secondly, you don’t have to travel anywhere. This method is travel free which means you save money on petrol. Although there are some advantages there are some disadvantages. The first one is that there could be better deals out there. You can run a similar promotion for less money. There are plenty of marketing programs you can use; such as Facebook. For example, you can offer a discount or promotion on a Facebook page. It's an effective way to engage new and existing customers at a very low…

    • 1413 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    When you “make” a customer, you have begun the process of establishing a trust dimension. This trust becomes the basis for not only your business, friendships as well.…

    • 818 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Case Study : Groupon

    • 535 Words
    • 3 Pages

    Groupon is an online group purchase website that offers customers a discount on different kinds of products and services. The biggest challenge for the company is that its business model is easy to copy.…

    • 535 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Groupon

    • 698 Words
    • 3 Pages

    1. An understanding of consumer behavior helped Groupon grow from 400 subscribers in Chicago in 2008 to 60 million subscribers in 40 countries today by developing the concept of making offers that are only carried out if enough people commit to participate in them. Groupon’s simple business model offers subscribers at least one deal in their city each day, but the coupon is only valid if a certain number of subscribers sign up for this deal.…

    • 698 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Groupon

    • 2433 Words
    • 10 Pages

    As a group, we have chosen to examine and report on Groupon and relevant information on the marketing strategies and efforts employed by the organization, as well as the ethics and social responsibility related to Groupon’s marketing. Groupon’s mission statement according to their letter to shareholders is “To become the operating system of local commerce.” Groupon has stumbled and disappointed users of their services because of rapid growth. Instead of focusing on growth, Groupon must listen to their stakeholders and improve relations with the customers-both merchants and consumers, as well as investors of the organization. We want to evaluate the company’s objectives, goals, marketing strategy, marketing mix, as well as the ethics and social responsibility of this organization.…

    • 2433 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    group on

    • 2376 Words
    • 6 Pages

    Groupon is an online coupon that allows a customer who subscribes from Groupon.com to purchase or buy a definite service from a local business at a flat discount rate from 50 % to 90 %. A new Groupon is to be sent to the online subscribers each day and it has to be purchased before the specified time limit and it should have a minimum number if the buyers are decided before the deal is on and when the minimum number of subscribers wants the deal then the deal is said to be completed. The market for Groupon is the internet users or the online subscribers as it send the Groupon from various local businessmen to the online subscribers to get discount.…

    • 2376 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Groupon and the 4 P's

    • 1281 Words
    • 6 Pages

    The Groupon product is certainly categorized best as an innovative product. Groupon was the first to enter the “deals” market in a world of social commerce. Social commerce is a subset of e-commerce that involves the use of social media, online media that supports social interaction and user contributions, to assist in the online buying and selling of products and services. While Groupon isn’t the first company to use social commerce in their distribution strategy, however, they are the first company to introduce “deals” within social commerce. In 2004, Woot.com was launched offering a deal a day, however, it was a modified version of earlier dot-com-bubble sales like Ubid.com which focused on technology related products. In November 2008, Groupon entered the market and became the first company to offer deals that were only triggered after a group of people purchased the deal, increasing the social aspect of the daily deal concept. Their complete deal package, including a marketing and advertising component for the merchants, has never been done before with such refinement.…

    • 1281 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Groupon Background

    • 2303 Words
    • 10 Pages

    Groupon is a website that offers special deal on a product or service in one category on a daily basis. Deals are segmented by location, so users do not get information on items that are not relevant to them. The concept is relatively simple and is based on collective buying power. This means that a deal will only go through when a certain number of individuals have purchased that particular deal. The merchant is responsible for determining what number is required for the deal to become valid. This is commonly referred to as the tipping point. Only once this tipping point has been achieved will the payment be processed and the user will receive access to the coupon.…

    • 2303 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Groupon Case Study

    • 1675 Words
    • 7 Pages

    I believe that Groupon has become successful for many different reasons. First of all, Groupon was the first to transport the traditional “Coupon clipping” to the online world. This opened many opportunities. It was something new, exciting to consumers that they hadn´t seen in this way. So Groupon had a first mover advantage even though they only connected already existing ideas and technologies in a new way. By being online Groupon could reach many, possibly millions, of people at once. This was a strong argument when Groupon talked to local merchants. As most of these merchants did not have an extensive marketing budget and were not necessarily familiar with new online marketing techniques, this was a great opportunity for them to attract customers without a big investment. Groupon was very smart to lure local merchants by forgoing any up-front payments and letting them decide about specification of the offer such as the tipping point: the merchants thought they had nothing to lose. Groupon also realized very fast that local merchants respond well to face to face interaction and instead of just trying to make business over the phone and via e-mail Groupon started to build a sales force of accounts executives based in local markets. Furthermore, Groupon was very aggressive when it came to negotiating discounts. Opposed to regular coupons that might vary in the percentage of discounts given, Groupon only gave out vouchers with a radical discount of at least 50%. Being able to find such high discounts on a regular basis for many different products and services all in one place, made Groupon very attractive to consumers. It was very convenient that the offers were local but not limited to a certain store or product/service. And the offer was also very simple to use for consumers. They pay for the voucher online at their Groupon account and take the voucher to the merchant where they will get…

    • 1675 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Oxymoron Sales Ethics?

    • 1860 Words
    • 8 Pages

    It has been said that sales ethics is an oxymoron. Do you agree? Discuss this statement.…

    • 1860 Words
    • 8 Pages
    Powerful Essays
  • Better Essays

    Many people believe that famous brand name and high price is a guarantee of high quality. This belief, however, is challenged as Armani has been caught in several quality scandals in China. In fact, Armani is not the only brand that has been dogged by marketing scandals. All these scandals in the market are indicative of the lack of marketing ethics of today’s companies. This essay will first briefly describe the quality scandals of Armani. Then American Marketing Association (AMA) Code of Ethics will be applied to discuss the ethicality of Armani’s marketing activity. The essay will conclude with suggestions for Armani to restore its brand name.…

    • 876 Words
    • 4 Pages
    Better Essays

Related Topics