Archive for August, 2009

PostHeaderIcon Ethical Problems in Product Strategy

Product quality, planned obsolescence, brand similarity, and packaging questions are significant concerns of consumers, managers, and governments. Competitive pressures have forced some marketers into packaging practices that may be considered misleading, deceptive, and/or unethical. Some firms make packages larger than necessary to gain shelf space and consumer exposure in the supermarket. Odd-sized packages make price comparisons difficult. Botdes with concave bottoms give the impression that they contain more liquid than they actually do. The real question seems to be whether these practices can be justified in the name of competition. Growing regulatory mandates appear to be narrowing the range of discretion in this area.
Product testing is another area that raises ethical concerns. To help assure consumers of product quality, many companies use seals of approval for their goods and services, such as the Good Housekeeping Seal of Approval and seals of the American Cancer Society and American Heart Association. Recently, however, consumers have begun to question whether the use of these seals
isethical, since they have to be purchased at fees ranging from $10,000 to $1 million. The seals also do not promise that the product is the best one on the market. Many of the organizations
that offer seals of approval do not conduct product testing themselves or even compare brands.

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