Ethical and Moral Factors in Marketing: Influencing Consumer Behavior

This report evaluates the ethical and moral factors that marketers face when trying to influence consumer behavior, using Redbull as a case study. It identifies issues like false advertising and misrepresentation, which negatively impact brand image and customer trust. The report discusses health consciousness, environmental concerns, and societal values as critical ethical considerations. It also references utilitarianism as an ethical theory and highlights the consequences of unethical practices, such as lawsuits and damaged reputation. Recommendations include adhering to ethical codes, complying with consumer protection laws, incentivizing ethical behavior, promoting transparency, and providing ethics training to improve marketing practices and build a stronger, more ethical brand.

Business management-
consumer behavior
assignment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Evaluation of ethical and moral factors facing marketers while trying to influence consumer
behavior through product.............................................................................................................3
Recommendations........................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
In the current era, businesses implement variety of strategies that helps to improve the
sales and customer base. With regard to the same, they did not comply with ethics and moral
factors. Similarly, the present study also focused upon different ethical and moral factors faced
by the marketers while influencing the customer behavior. For that, Redbull as a product used
who faces unethical marketing strategies that causes direct impact over the brand image. Also,
report will highlight the factors and suggest ways through which company may overcome such
issues.
Evaluation of ethical and moral factors facing marketers while trying to influence consumer
behavior through product
Ethical behavior refers to that behavior which is ethical and morally correct as per the
view of society. It is so because business has general set of standards and they have to comply
with ethnic norms and morals of a society. Generally, marketers face a mistakes during
advertising where they do not comply with ethical and moral factors. For example, Redbull who
also involved in unethical marketing strategy because the energy drink was involved in false
advertising. Further, it lied and misrepresented that energy drink’s ability to raise reaction speed
and performance (Redbull’s unethical marketing strategies, 2021). This in turn reflected that to
influence the customer buying behavior, company uses unethical marketing practice that creates
negative impact over the customer purchasing. Nevertheless, as per the studies conducted by
European Food Safety Authority Journal, it has been evaluated that the energy drink only
contains caffeine as an active ingredient that do not have any performance enhancing properties.
Hence, it can be stated that company uses exaggerated product claim which influence customer
to buy the product, that is beyond moral factors.
Ethical and moral factors facing marketers:
An organization must adhere with cultural and ethical standards of a society that assist to
maintain high standards within market. It is so because ethics are those general principle of right
conduct that direct decisions (Halder and et.al., 2020). Furthermore, an organization must study
and satisfy the ethical concern and also avoid unethical practices while developing products and
advertisements that lead to undesirable consumer behavior. It is so because a small confusion

might mislead customer or else hurt their personal and cultural sentiments. With regard to the
same, there are many factors pertaining to ethical and moral which marketers facing are as
mentioned below:
Health consciousness and food safety: it is one of the most important ethical factor that
directly impact upon buyer’s behavior because if the product is safe, then it definitely influences
the customer’s purchasing power (Kushwah, Dhir and Sagar, 2019). In the context of chosen
product, advertising represent the product is healthy and safe, whereas it is not. This in turn
reflected that it affects psychological factor of individual which is exactly not measurable. Apart
from this, the marketers also comply with the motivation factor that influence person’s buying
behavior and as per Maslow’s theory of hierarchy, it has been identified that safety needs are
important concern that need to be followed by marketers while using advertising. However,
Redbull’s marketing strategy is consider unethical marketing strategy not because customer
perception, but it gives a higher energy boost than a cup of coffee.
Environmental consciousness and consumer knowledge: It is another ethical and moral
factor that also have a direct impact over the customer buying behavior. Such that while offering
a product in market, marketers need to ensure that it does not cause any negative impact over
environment because customer are also conscious about environment (Quoquab and et.al., 2017).
In the context of product like Redbull, it does not have any issues regarding environment
whereas, it lacked scientific support as per the customer knowledge. Therefore, it has been
critically evaluated that due to false representation in the marketing advertisement, the claim has
resulted to a law suit.
Moral and ethical values of a society: Organization only commit to comply with ethical
and moral values of society, but does not followed honesty, kindness, compassion and personal
responsibility. It has been also evaluated in Redbull case where, company does not focus health
and safety of individual. It leads towards dishonesty where customers badly affected because
drink does not contain any enhanced ingredient that raise the performance (Kushwah, Dhir and
Sagar, 2019). Therefore, this is reflected that companies should comply ethical factors and does
not mislead their customers, else it decreases the sales performance and affected customer base
in negative manner.

Utilitariansim as an ethical theory stated that a decision taken by a business can be good
when it helps many individual for a good cause, where entity must obey the rules and consider
moral factors as well (Nadeem and et.al., 2020). This in turn shows that company will definitely
earn benefits in terms of financial and non-financial by using alternative actions. In the case of
Redbull, false marketing strategy, customer base affected and this in turn shows that there is a
negative impact identified over the sales and brand image of a firm. Misrepresentation in
advertising is consider false because company made intentionally to promote the particular
products and it might lead to influence the reputation in market as well. However, the theory also
has its own limitations such it at the end, it does not justify the things and as a result, company
does not reach towards a particular action.
Overall, it is evaluated that with a false representation of advertisement, customer may
claim to law suit. Like, Redbull’s marketing strategy is prove unethical due to falsified conduct
and practices. This is all performed due to gain competitive advantage and attract youngsters
towards it in order to enhance the sales. That is why, it is necessary to focused upon marketing
style by complying with ethical and moral factors, otherwise it will lead to cause adverse impact
over the business performance and marketers.
Recommendations
Through the above, it is evaluated that for the chosen product, there are many moral and
ethical factors that must be complied by company, but unfortunately, company didn’t. Therefore,
this in turn affect the customer decision making that contribute to sales performance. With regard
to the same, there are many ways through which managers of company may address these issues
which are as mentioned below:
 It is to be recommended to the managers to comply with ethical codes and behavior. Each
company have their own codes which need to be complied. Similarly, in the case of
Redbull, managers and senior authority should ensure that marketers comply with defined
ethical code of conduct. This in turn assist to improve the customer base and financial
performance (O'Connor, Sims and White, 2017).
 Further, it is also suggested to the manager to adhere with consumer protection act in
which company must have to produce fairness and quality of goods. As per this act,
company did not harm the product safety and also to gain the competitive advantage, it

should not mislead about the products. Otherwise, it causes negative impression towards
the customers (Cheung and To, 2020). That is why, it is essential for managers to comply
with laws that helps in smooth functioning of a business.
 Further, company can also introduce reward ethical behavior that promote individual to
work ethically. The reward can be offered in the form of financial and non-financial ways
that motivate marketers to present the products with its actual description. For example,
to promote new energy drink in market, company may offer discounts and cash vouchers
that helps to attract the customer rather than misleading. In every customer purchasing,
company can offer rewards or incentive to the marketers that help to promote ethical
behavior.
 It is also suggested to the managers to be transparent toward their customers and let the
customer know about the products. This in turn assist to maintain the customer base and
also attract other customers (Jung, Choi and Oh, 2020). With the help of transparency,
company able to meet the set objectives and also generate sale. Along with this, proper
transparency assists to create a positive impression towards a customer and impact
positively upon customer financial performance.
 Moreover, managers can also have focused upon training sessions in which they trained
employees regarding ethical and moral aspects. This in turn assist to develop an ethical
culture where marketers use ethical practices to let people know about new offers. Also,
this in turn helps to generate an effective communication between key stakeholders by
focusing upon ethical practices. Through this, managers can also let individual
understand about the ethics and moral factors within a workplace.
CONCLUSION
By summing up above report it has been concluded that ethical and moral factors have
their own importance to present any product in market. For that, company must comply with the
laws and regulation in order to create positive impression upon customers. Moreover, it is also
concluded through the above report that Redbull misinterpret the ingredient about a product by
using unethical marketing strategy. Therefore, there is a need to reevaluate the marketing
strategy of a company by complying with ethical code of conduct and being transparent towards

customers. This in turn assist to address the issues faced by managers while promoting any
product within market.

REFERENCES
Books and Journals
Cheung, M. F. and To, W. M., 2020. The effect of consumer perceptions of the ethics of retailers
on purchase behavior and word-of-mouth: The moderating role of ethical
beliefs. Journal of Business Ethics, pp.1-18.
Halder, P. and et.al., 2020. How national culture and ethics matter in consumers’ green
consumption values. Journal of Cleaner Production. 265. p.121754.
Jung, H. J., Choi, Y. J. and Oh, K. W., 2020. Influencing factors of Chinese consumers’ purchase
intention to sustainable apparel products: Exploring consumer “attitude–behavioral
intention” gap. Sustainability. 12(5). p.1770.
Kushwah, S., Dhir, A. and Sagar, M., 2019. Ethical consumption intentions and choice behavior
towards organic food. Moderation role of buying and environmental
concerns. Journal of Cleaner Production. 236. p.117519.
Kushwah, S., Dhir, A. and Sagar, M., 2019. Understanding consumer resistance to the
consumption of organic food. A study of ethical consumption, purchasing, and choice
behaviour. Food Quality and Preference. 77. pp.1-14.
Nadeem, W. and et.al., 2020. Consumers’ value co-creation in sharing economy: The role of
social support, consumers’ ethical perceptions and relationship quality. Technological
Forecasting and Social Change. 151. p.119786.
O'Connor, E. L., Sims, L. and White, K. M., 2017. Ethical food choices: Examining people’s
Fair Trade purchasing decisions. Food quality and preference. 60. pp.105-112.
Quoquab, F. and et.al., 2017. Factors affecting consumers’ intention to purchase counterfeit
product: empirical study in the Malaysian market. Asia Pacific Journal of Marketing
and Logistics.
Online
Redbull’s unethical marketing strategies. 2021. [Online]. Available through:
<https://www.essaytyping.com/redbulls-unethical-marketing-strategies/>.