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Consumer Ethics?. Unethical practices of consumers are a serious concern to marketers Filling in warranty claims after the claim period Misredeeming coupons Fraudulent returns Inaccurate information on applications What can marketers do to minimize the unethical practices of consumers?.
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Consumer Ethics? • Unethical practices of consumers are a serious concern to marketers • Filling in warranty claims after the claim period • Misredeeming coupons • Fraudulent returns • Inaccurate information on applications • What can marketers do to minimize the unethical practices of consumers?
Planned Obsolescence • Planned obsolescence is the practice of making products that will breakdown, fall apart, stop working, crack, break, lose color, etc all in order to make the consumer need to replace the product after a certain amount of time. • For an industry, planned obsolescence stimulates demand by encouraging purchasers to buy again sooner if they still want a functioning product. Built-in obsolescence is in many different products, from vehicles to light bulbs, from buildings to proprietary software.
Ethical Issue: Unusable Products • In the U.S., 300 million tires are thrown away every year • They cannot be burned, and they do not decompose
Possible Solutions • Tires can be shredded and made into floor tiles and padding for children’s playgrounds… OR • Used as sound barriers along highways…OR • Dumped in the ocean and used as artificial reefs
Ethical Issue: Planned Obsolescence • According to Silicon Valley Toxics Coalition, 15 million computers are rendered obsolete each year worldwide • Computers double in power every 18 months • In 2005, there was 315 million obsolete computer in the world
Ethical Issue: Planned Obsolescence • Hardware isn’t the only thing thrown away: • Millions of CD’s are rendered obsolete by constant updates • Millions of diskettes are discarded as well which take 450 years to decompose, and if incinerated, they release gases that cause acid rain
Ethics: In Action • Planned Obsolescence is a huge issue, think about how long your cell phone lasts, computer, even socks and shoes. All are developed to “self-destruct” a little with each use. • Research current issues around Planned Obsolescence with the Ethic: Current Event Assignment. Due: Next Class