Access Course<\/a><\/div>\n\n\n\n\n<div class=\"wp-block-group\">\n<h2 class=\"wp-block-heading\" id=\"h-course-overview\">Course Overview<\/h2>\n\n\n\n<p>Ethical decisions in business are everywhere. Organizations have learned that the costs of unethical actions can be high, both legally, and from a public relations perspective. This course introduces the major ethical frameworks in business and seeks to give learners a strong foundation in ethical business practices, whether as individuals, as a leaders, or as stewards of the organization. This course reviews how organizations can establish and encourage an ethical culture while monitoring for compliance.<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-group\">\n<h2 class=\"wp-block-heading\">What You\u2019ll Learn<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Describe the major ethical frameworks used in developing business ethics<\/li>\n\n\n\n<li>Explain the three components of the Ethical Triangle: Individual Ethics, Leadership Ethics, and Governance and Control<\/li>\n\n\n\n<li>Discuss key ethical challenges in the workplace<\/li>\n\n\n\n<li>Describe the use of organizational ethics codes<\/li>\n\n\n\n<li>Outline the ethical issues involved in the employer-employee relationship including Employment at Will, due process and fairness<\/li>\n\n\n\n<li>Discuss the use of ethics training<\/li>\n\n\n\n<li>Explain how organizations monitor ethical performance<\/li>\n\n\n\n<li>Describe the relationship between Corporate Social Responsibility (CSR) and ethics<\/li>\n\n\n\n<li>Outline issues involving corporate governance<\/li>\n\n\n\n<li>Explain how sustainability is an ethical concern<\/li>\n\n\n\n<li>Discuss ethics and the regulatory environment (Sarbanes-Oxley Act; U.S. Foreign Corrupt Practices Act)<\/li>\n\n\n\n<li>Explain the issues around whistleblowing<\/li>\n\n\n\n<li>Describe the role of leadership in establishing an ethical culture<\/li>\n<\/ul>\n<\/div>\n\n\n\n\n\n\n\n\n\n\n\n\n","post_title":"Business Ethics in the 21st Century","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"closed","post_password":"","post_name":"business-ethics","to_ping":"","pinged":"","post_modified":"2025-03-24 15:41:12","post_modified_gmt":"2025-03-24 20:41:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.ama.org\/?post_type=ama_courses&p=190540","menu_order":0,"post_type":"ama_courses","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":181934,"post_author":"109","post_date":"2025-01-31 13:48:39","post_date_gmt":"2025-01-31 19:48:39","post_content":"\n<p>The 2025 AMA Marketing Skills Report identifies the skills required to thrive as a marketer today and in the future. Based on a survey of 1,200+ marketers, over 450 job postings and interviews with industry experts, this report lays out the new realities shaping the field of marketing---including the AI transformation, shifting consumer expectations and unprecedented changes to marketing channels---as well as the skills marketers will need to stay ahead.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-highlights\">Highlights<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In this age of automation, marketers who want to stay competitive should not lose sight of the importance of \u201chuman\u201d skills\u2014especially communication, innovation and adaptability.<\/li>\n\n\n\n<li>When it comes to job-specific skills, the largest current competency gaps are in digital marketing, data and analytics, proving ROI and data privacy and compliance. These are areas where marketers are not fully equipped to meet the demands of their roles today.<\/li>\n\n\n\n<li>Marketers report a high level of uncertainty about how skills related to technology and channels will change over the coming years. This volatility is most apparent in AI, data privacy, search and social media.<\/li>\n\n\n\n<li>Gen AI is the top rated future skill, with 43% of survey respondents predicting it will become more important in five years.<\/li>\n\n\n\n<li>Data privacy is quickly rising in importance as a skill for marketers, driven by a wave of comprehensive state-based regulations and mounting consumer pressure.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:13px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-ama-roleblock\"><p><\/p>\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-button aligncenter is-style-fill\"><a class=\"wp-block-button__link wp-element-button\" href=https://www.ama.org/"https:////myama.force.com//services//oauth2//authorize?response_type=code&client_id=3MVG9CEn_O3jvv0w2UhdWBwPSVH0HQeYkNhAufvhjDMNkScGyF_5ncMuk0mJQWZ9vOZtfcRT0uuSlO65nJjvW&redirect_uri=https%3A%2F%2Fwww.ama.org%2Fsf%2Fredirect&state=https%3A%2F%2Fwww.ama.org%2F2025%2F01%2F31%2F2025-marketing-skills-report\%22>LOGIN AS A MEMBER TO DOWNLOAD<\/a><\/div>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-text-align-center has-grey-900-color has-text-color has-link-color\">Not a member? <a href=https://www.ama.org/"https:////www.ama.org//ama-member-benefits///">Explore membership<\/a> or <a href=https://www.ama.org/"https:////resources.ama.org//2025-marketers-skills-report-nm/">enter your details to download the report<\/a>.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-ama-roleblock\"><p><\/p>\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=https://www.ama.org/"https:////www.ama.org//wp-content//uploads//2025//01//AMA-Skills-Marketers-Need-2025-And-Beyond.pdf/">Download The Full Report<\/a><\/div>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-level-up-your-skills-with-the-ama\">Level Up Your Skills With the AMA<\/h2>\n\n\n\n<p>AMA offers training and certificates in the critical skills marketers need to advance and future-proof their careers.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n<div class=\"wp-block-media-text is-stacked-on-mobile has-beige-100-background-color has-background\"><figure class=\"wp-block-media-text__media\"><img src=https://www.ama.org/"https:////www.ama.org//wp-content//uploads//2024//10//Toolkits.jpg?w=1024\%22 alt=\"\" class=\"wp-image-173357 size-full\"\/><\/figure><div class=\"wp-block-media-text__content\">\n<h2 class=\"wp-block-heading\" id=\"h-find-more-learning\">Find More Learning<\/h2>\n\n\n\n<p>Our courses cover a wide range of topics, and you can choose from a variety of in-person and online formats that fit your schedule.<\/p>\n\n\n\n<div class=\"wp-block-buttons\">\n<div class=\"wp-block-button is-style-secondary\"><a class=\"wp-block-button__link wp-element-button\">See All Upcoming Learning<\/a><\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<p><\/p>\n","post_title":"The Skills Marketers Need in 2025 and Beyond","post_excerpt":" ","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"2025-marketing-skills-report","to_ping":"","pinged":"","post_modified":"2025-03-26 13:53:09","post_modified_gmt":"2025-03-26 18:53:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.ama.org\/?p=181934","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":176390,"post_author":"198774","post_date":"2024-11-19 05:00:00","post_date_gmt":"2024-11-19 11:00:00","post_content":"\n<p>To better represent consumers who have traditionally been underrepresented in the marketplace, an increasing number of brands are extending or launching product lines that are more inclusive of a diverse consumer base.<\/p>\n\n\n\n<p>In a <a href=https://www.ama.org/"https:////doi.org//10.1177//00222429241268634/" target=\"_blank\" rel=\"noreferrer noopener\">new <em>Journal of Marketing<\/em> study<\/a>, we find that inclusivity initiatives may not be seen as equally positive by all consumers. Though these initiatives are generally met with positivity, consumers who feel underrepresented in the marketplace\u2014the very consumers these initiatives intent to serve\u2014may respond less favorably than represented consumers. Our research team examines how feeling underrepresented can increase consumers\u2019 skepticism about whether the products in these expanded lines will fit their needs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-underrepresentation-in-the-marketplace\">Underrepresentation in the Marketplace<\/h2>\n\n\n\n<p>When consumers feel underrepresented in the marketplace, they are likely experiencing product and consumption situations in which their needs are either unconsidered, unheard, or misconstrued by companies. We find that consumers of all races feel underrepresented and, not surprisingly, feelings of representation are strongly correlated with race. In the 2020 United States Census, Black and Hispanic consumers accounted for 30.8% of the population, with the White population decreasing from 63.7% of the population to 57.8%. Despite this, White consumers have been the primary focus for skin tone related products\u2014with many brands offering a truncated range of skin tones. As such, many consumers are left using products that do not fully meet their needs.<\/p>\n\n\n\n<p>We suggest that consumers\u2019 past experiences create an expectation that new products, even in different product categories, may not meet their needs. This hesitancy creates a sense of product fit skepticism: doubting whether the product will actually match skin tone needs. In turn, this product fit skepticism limits the extent of positive brand attitudes.<\/p>\n\n\n\n<p>Across several studies we find that product line extensions aimed at inclusivity are met with more positive responses from represented consumers. Underrepresented consumers, however, have lower positive responses. We find that these lower responses span a wide range of parameters: attitude, click-through\/engagement with marketing endeavors, interest in purchase, and sharing information about the product with others. This lower attitude is not because underrepresented consumers are more negative toward brand innovations overall. In fact, we find that this lower brand attitude only persists for product line extensions that are aimed at inclusivity versus general innovation. These consumers have a higher feeling that the product will not fit or match their needs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-can-companies-do\">What Can Companies Do?<\/h2>\n\n\n\n<p>How can companies better meet and articulate the needs of their consumers? We find that demonstrating respect for a consumer\u2019s needs can help boost reception of product line extensions. Specifically, underrepresented consumers are less likely to believe that their needs are taken into account during the product development stage. When a company can show that underrepresented consumers\u2019 specific needs have been taken into account and voices have been heard, underrepresented consumers may be less skeptical and more open to the product.<\/p>\n\n\n\n<p>We find different avenues through which a company can demonstrate respect:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Customization<\/strong>, which allows consumers to closely tailor their experiences, could reduce questions about whether the product can truly meet their needs.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Brand positioning<\/strong>, a longer-term marketing tool, can demonstrate that the company cares about the needs of underrepresented consumers.<\/li>\n<\/ul>\n\n\n\n<p>For example, Fenty Beauty\u2019s \u201c<a href=https://www.ama.org/"https:////www.vogue.co.uk//beauty//article//rihanna-fenty-beauty-diversity/" target=\"_blank\" rel=\"noreferrer noopener\">Beauty for All<\/a>\" campaign chose representative celebrity spokespeople, utilized social media to reignite the conversation around diversity in the beauty industry, and involved beauty scientists of color during product development. This likely converged to create a positioning of high respect of consumer needs.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\">\n<p>Fenty Beauty\u2019s \u201cBeauty for All\" campaign chose representative celebrity spokespeople, utilized social media to reignite the conversation around diversity in the beauty industry, and involved beauty scientists of color during product development. This likely converged to create a positioning of high respect of consumer needs.<\/p>\n<\/blockquote>\n\n\n\n<p>In other words, companies need to show that their approach is not a one-off activation but part of the brand\u2019s strategic positioning prior to launch. They need to continually articulate their positions on representation and act upon their goals even after launching products targeted at underrepresented customers. Consumers want to know that these extensions are more than just a marketing tactic.<\/p>\n\n\n\n<p>Companies should also note that certain consumer characteristics are often correlated with feelings of representation. For instance, we find that feelings of representation in skin tone products correlate with gender (i.e., female-identifying consumers feel more represented) and political orientation (i.e., the more conservative, the more one feels represented). The strongest correlation we find is with race (i.e., white consumers feel significantly more represented). Marketers may be able to use these more observable consumer characteristics as a proxy to identify consumers with lower feelings of representation and determine who might be more skeptical of their inclusivity initiatives.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\">\n<p>Consumers want to know that these extensions are more than just a marketing tactic.<\/p>\n<\/blockquote>\n\n\n\n<p>Altogether, we show that while inclusivity-based product line extensions are generally viewed favorably in the marketplace, underrepresented consumers are still skeptical and show lower response and engagement with the brand. If companies truly want to serve the needs of a diverse consumer base, they must be willing to put in the work to demonstrate respect and ongoing care for their consumers\u2014especially those who have not felt represented within the marketplace.<\/p>\n\n\n\n\n\n<p><strong>Source:<\/strong> Jennifer D\u2019Angelo, Lea Dunn, and Francesca Valsesia, \u201c<a href=https://www.ama.org/"https:////doi.org//10.1177//00222429241268634/" target=\"_blank\" rel=\"noreferrer noopener\">Is This for Me? Differential Responses to Skin Tone Inclusivity Initiatives by Underrepresented Consumers and Represented Consumers<\/a>,\u201d<em> <a href=https://www.ama.org/"https:////www.ama.org//journal-of-marketing///" target=\"_blank\" rel=\"noreferrer noopener\">Journal of Marketing<\/a><\/em>.<\/p>\n\n\n\n<p>Go to the <em><a href=https://www.ama.org/"https:////www.ama.org//journal-of-marketing///" target=\"_blank\" rel=\"noreferrer noopener\">Journal of Marketing<\/a><\/em><\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n","post_title":"When Inclusive Marketing Doesn't Resonate: How Brands Can Build Trust in Inclusivity-Focused Product Lines","post_excerpt":"Many inclusivity efforts fall short for underrepresented consumers. This Journal of Marketing study explores consumer skepticism and offers strategies to build genuine brand trust.","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"when-inclusive-marketing-doesnt-resonate-how-brands-can-build-trust-in-inclusivity-focused-product-lines","to_ping":"","pinged":"","post_modified":"2024-11-18 19:08:43","post_modified_gmt":"2024-11-19 01:08:43","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.ama.org\/?p=176390","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":122487,"post_author":"116750","post_date":"2023-05-10 17:48:38","post_date_gmt":"2023-05-10 17:48:38","post_content":"\n<iframe src=https://www.ama.org/"https:////podcasters.spotify.com//pod//show//jm-buzz//embed//episodes//JM-Buzz-Deep-Dive-Marketing-and-Society-with-Dr--Dionne-Nickerson-e2045c8//a-a9f9s10/" height=\"161px\" width=\"100%\" frameborder=\"0\" scrolling=\"no\"><\/iframe>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h4 class=\"wp-block-heading has-text-align-center\" id=\"h-two-recent-journal-of-marketing-articles-provide-new-insights-into-marketing-and-societal-issues\"><em><strong>Two recent Journal of Marketing articles provide new insights into marketing and societal issues<\/strong><\/em><\/h4>\n\n\n\n<p>From consumers to investors to employees, a recent survey reports that every stakeholder group expects <a href=https://www.ama.org/"https:////time.com//6140018//businesses-societal-issues-study///" target=\"_blank\" rel=\"noreferrer noopener\">businesses to help find solutions to issues including economic inequality, gender bias, and climate change<\/a>. With these expectations only growing, there may be a need to develop new measures in marketing to investigate questions at the intersection of marketing and society. Using such measures has the potential to inform policymakers, which may ultimately improve outcomes on some of the most critical issues facing society today. Two recent <em>Journal of Marketing<\/em> articles provide nuance to previously used measures to consider marketing's impact on societal outcomes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-positive-influence-of-female-executives-in-the-c-suite\">The Positive Influence of Female Executives in the C-Suite<\/h2>\n\n\n\n<p>Despite significant strides during the 20th century, gender equality remains a pressing societal issue. In business, <a href=https://www.ama.org/"https:////www.stkate.edu//academics//women-in-leadership-degrees//blog//gender-bias-in-the-workplace#:~:text=The%20gender%20bias%20in%20the%20workplace%20limits%20women%20and%20the,to%20hold%20valuable%20contributors%20back.\" target=\"_blank\" rel=\"noreferrer noopener\">women continue to face inequality leading most notably to lower pay<\/a>, with even starker consequences for women of color. However, recent findings suggest that women in top management reap not only personal benefits but also financial performance benefits for their firms. The <em>Journal of Marketing<\/em> article, \"<a href=https://www.ama.org/"https:////doi.org//10.1177//00222429221120419/" target=\"_blank\" rel=\"noreferrer noopener\">Customer Orientation and Financial Performance: Women in Top Management Teams Matter<\/a>\" by Chandra Srivastava, Saim Kashmiri, and Vijay Mahajan, shows that women executives influence the financial performance of firms by centering and focusing on customers.<\/p>\n\n\n\n<p>The authors introduce female influence in the top management team (FITMT) as a measure of female executives' leverage on decision making within the entire management team (TMT). FITMT differs from traditional demographic standards that focus on female representation in the TMT, thus allowing the authors to tease out these important findings. As Srivastava notes, \"By expanding access to leadership among women, we get better marketing for the firm, and we get a more equal society.\"<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-rethinking-financial-vulnerability\">Rethinking Financial Vulnerability<\/h2>\n\n\n\n<p>The <em>Journal of Marketing<\/em> article \"<a href=https://www.ama.org/"https:////doi.org//10.1177//00222429221150910/" target=\"_blank\" rel=\"noreferrer noopener\">Beyond Income: Dynamic Consumer Financial Vulnerability<\/a>\" by Linda Court Salisbury, Gergana Y. Nenkov, Simon J. Blanchard, Ronald Paul Hill, Alexander L. Brown, and Kelly D. Martin addresses another critical societal issue: consumer financial vulnerability (CFV). The authors suggest that addressing CFV requires broadening CFV to account for individuals' risk of experiencing harm, not just those currently experiencing harm. Given the current measures of CFV, Salisbury provides a powerful example explaining why we typically underestimate the number of vulnerable people in the marketplace: \"An uninsured person may delay medical treatment, preventive treatment because they can't afford it. That could lead to a medical crisis, which then could lead to short-term disability and loss of work. It becomes a kind of domino effect of harm. So, we wanted to try to make it clear that vulnerability is a risk of harm...You don't have to be experiencing harm to still be vulnerable to it.\" The researchers also show that by analyzing customer financial data, marketers can help to offset consumer financial vulnerability.<\/p>\n\n\n\n<p>In addition to the managerial insights and policy implications, these articles shed light on the need for new tools and measures to address issues at the intersection of marketing and society appropriately. Referring to FITMT, Srivastava explains that companies \"can look at it and say, 'Well, we have an equal number of women to men, but the women don't hold any of the top leadership positions. They're all at the lower ranks.' And so, this would enable them to really see how much influence they're giving diverse bodies outside of what's the norm.\" Discussing the logic behind expanding CFV, Salisbury adds that \"in other domains, firms might start to think of considering measurement, which would allow us to identify the risk of certain types of harms that consumers might experience, rather than waiting for the harms to occur. I think that could really benefit, both consumers and firms alike.\"<\/p>\n\n\n\n<p>Stakeholders increasingly expect firms to address societal issues. Thus, as marketing academics and practitioners consider marketing's impact on societal outcomes, new ways of measuring this impact may become necessary. While the stakes are high, given the challenges of the moment, the rewards could mean a more equitable and just society for all.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Advice for Firms Addressing Societal Issues<\/strong><\/h2>\n\n\n\n<ol type=\"1\" start=\"1\">\n<li>Growth and profit maximization prioritizes one group of stakeholders, owners\/investors, often at the expense of other stakeholders. Firms should prioritize the needs of all their stakeholders (e.g., employees, customers, communities), focusing on long and longer-term performance. <\/li>\n\n\n\n<li>Firms should recognize that some of the measures that have been used in the past may be insufficient to analyze and assess the issues of the moment. <\/li>\n\n\n\n<li>Financial performance measures are no longer enough. Firms should begin measuring their social impact as well.<\/li>\n\n\n\n<li>Figuring out the best metrics may require investing time, financial, and personnel resources.<\/li>\n<\/ol>\n\n\n\n<p>Go to the <em><a href=https://www.ama.org/"https:////www.ama.org//journal-of-marketing///" target=\"_blank\" rel=\"noreferrer noopener\">Journal of Marketing<\/a><\/em><\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n","post_title":"New Perspectives on Addressing Issues at the Intersection of Marketing and Society","post_excerpt":"Marketing professor Dionne Nickerson summarizes two recent Journal of Marketing studies that address important societal issues.","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"new-perspectives-on-addressing-issues-at-the-intersection-of-marketing-and-society","to_ping":"","pinged":"","post_modified":"2024-01-03 16:43:23","post_modified_gmt":"2024-01-03 22:43:23","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.ama.org\/?p=122487","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":121762,"post_author":"156550","post_date":"2023-05-02 05:02:00","post_date_gmt":"2023-05-02 05:02:00","post_content":"\n<iframe src=https://www.ama.org/"https:////podcasters.spotify.com//pod//show//jm-buzz//embed//episodes//JM-Buzz-Deep-Dive-Battling-Deceptive-Pricing-with-Dr--Adithya-Pattabhiramaiah-e2cv9pi/" height=\"161px\" width=\"100%\" frameborder=\"0\" scrolling=\"no\"><\/iframe>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>Does competition make firms more honest? Over 50 years ago, the Federal Trade Commission (FTC) assumed the answer was \"yes\" when it stopped enforcing its deceptive pricing regulations. Since that time, competition has increased significantly, particularly in the crowded U.S. retail trade. However, contrary to the FTC's hypothesis, deceptive pricing has proliferated during the same period.<\/p>\n\n\n\n<p>There are thousands of articles, reports, and websites warning about deceptive pricing, showing evidence of it, or reporting news about multimillion dollar lawsuits. Consumers' Checkbook <a href=https://www.ama.org/"https:////www.checkbook.org//washington-area//sale-fail///" target=\"_blank\" rel=\"noreferrer noopener\">recently tracked prices of 25 major retailers<\/a> and concluded that \"most stores' sale prices\u2026are bogus discounts\" because \"at many retailers the 'regular price' or 'list price' listed is seldom, if ever, what customers actually pay.\"<\/p>\n\n\n\n<p>In a <a href=https://www.ama.org/"https:////doi.org//10.1177//00222429231164640/" target=\"_blank\" rel=\"noreferrer noopener\">new <em>Journal of Marketing<\/em> study<\/a>, we develop a descriptive model to explain why competition is more likely to encourage rather than discourage deception. We then propose a potential solution that would apply to firms using reference prices to promote a sale price for an item. That solution would be to require those firms to add to their price labeling the price at which the item was most frequently offered for sale in the previous business period\u2014what we label its \u201ctrue normal price.\u201d<\/p>\n\n\n\n<p>Our study starts by critically evaluating two assumptions that underlie the FTC's \"competition discourages deception\" theory:<\/p>\n\n\n\n<ol>\n<li>The first assumption is that inflated reference prices are largely ignored by consumers, who focus primarily on evaluating the actual selling price in a promoted deal. As such, price competition pushes selling prices lower and renders reference prices harmless.<br><br>However, empirical research gives a different picture. A robust finding in the marketing literature is that the addition of a high regular price stated in a price promotion increases consumer willingness to pay. The research illustrates how much consumers value \"getting a good deal,\" leading to greater sales for the retailer when comparative prices are used.<br><br><\/li>\n\n\n\n<li>The FTC's second assumption is that competition drives out economic incentives to cheat; that is, more competition creates an economic incentive for firms to be truthful. Any temptation to stray will be constrained by natural market forces like consumer vigilance.<br><br>However, a number of recent economic models show the opposite; that is, the greater the competition, the more likely the firm will offer \"noisy\" information in an attempt to shield itself from this competition and, in the process, increase its profits.<\/li>\n<\/ol>\n\n\n\n<p>Three recent empirical examples support our overall model development, each of which show:<\/p>\n\n\n\n<ul>\n<li>Consistent seller use of high reference prices at which products are never or rarely sold<\/li>\n\n\n\n<li>Consumer choice being altered by these often fictitious reference prices<\/li>\n\n\n\n<li>Firms experiencing financial gains from posting inflated reference prices<\/li>\n<\/ul>\n\n\n\n<p>All this leads us to conclude that there is a substantial negative impact of fictitious reference pricing on consumer welfare.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-value-of-firms-telling-the-truth\"><strong>The Value of Firms Telling the Truth<\/strong><\/h2>\n\n\n\n<p>After evaluating several regulatory options, we conclude the best way to create real change in firms\u2019 behavior is to require them to tell the truth. The proposal is to require firms to disclose an item's true normal price (TNP) whenever comparative prices are used in price communications.<\/p>\n\n\n\n<p>To illustrate, let's say that a furniture retailer puts a sofa on sale as follows:<\/p>\n\n\n\n<p><strong>Regular Price $1399<\/strong><\/p>\n\n\n\n<p><strong>Sale Price $599<\/strong><\/p>\n\n\n\n<p>Let us further assume, as is common, that in the past three months the retailer offered the sofa for sale at a price of $1399 for just two weeks. For the other 10 weeks, the sofa was offered at $599. So, $599 is actually the price that is usually charged for the product.<\/p>\n\n\n\n<p>Our proposal is that this \"most regular\" price be posted alongside the other two prices as a legally required disclosure when a firm wishes to have a comparative price promotion.<\/p>\n\n\n\n<p>That is:<\/p>\n\n\n\n<p><strong>Regular Price $1399<\/strong><\/p>\n\n\n\n<p><strong>Sale Price $599<\/strong><\/p>\n\n\n\n<p><strong>True Normal Price $599*<\/strong><\/p>\n\n\n\n<p><strong>*Legal Disclosure: True Normal Price = the price most often charged by this retailer in the past three months.<\/strong><\/p>\n\n\n\n<p>The leads to a question: Does providing TNP moderate the effect of a promoted Advertised Regular Price (ARP)? We examine this question through a controlled experiment with 900 participants, where the participants' choices in the study determined their total expected compensation. We find that the presence of an ARP with a sale price significantly raises the chance that a consumer will buy. However, adding TNP information eliminates the effect of ARP.<\/p>\n\n\n\n<p>Our results support the premise that TNP provision would reduce or eliminate firms' incentives to give anything but honest information to consumers in their price promotions, and it would have an impact on average market prices, promotions, frequencies, and firm profits. We hope this study leads to a lively debate on the topic.<\/p>\n\n\n\n\n\n<p><strong>From: <\/strong>Richard Staelin, Joel E. Urbany, and Donald Ngwe, \u201c<a href=https://www.ama.org/"https:////doi.org//10.1177//00222429231164640/" target=\"_blank\" rel=\"noreferrer noopener\">Competition and the Regulation of Fictitious Pricing<\/a>,\u201d<em> <a href=https://www.ama.org/"https:////www.ama.org//journal-of-marketing///" target=\"_blank\" rel=\"noreferrer noopener\">Journal of Marketing<\/a><\/em>.<\/p>\n\n\n\n<p>Go to the <em><a href=https://www.ama.org/"https:////www.ama.org//journal-of-marketing///" target=\"_blank\" rel=\"noreferrer noopener\">Journal of Marketing<\/a><\/em><\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n\n\n<p><a id=\"_msocom_1\"><\/a><\/p>\n","post_title":"The Power of Revealing True Prices [Consumer Protection]","post_excerpt":"A new Journal of Marketing study proposes a requirement that sellers disclose \"true normal prices\" to help calm the out-of-control promotional pricing environment.","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"battling-deceptive-pricing-how-revealing-the-true-normal-price-can-protect-consumers","to_ping":"","pinged":"","post_modified":"2024-07-10 06:36:23","post_modified_gmt":"2024-07-10 11:36:23","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.ama.org\/?p=121762","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":111967,"post_author":"147053","post_date":"2022-12-06 23:37:52","post_date_gmt":"2022-12-06 23:37:52","post_content":"\n\n\n<p>Health and well-being are incredibly important to consumers, and this interest has led to the boom of news outlets covering health-related information. Unfortunately, many medical sources lack credibility and thus pose a serious threat to consumers through erroneous or exaggerated claims. Due to the overtly bombastic nature of much of cable TV\u2019s programming, consumers might be hesitant to believe the claims of a celebrity physician\u2019s on-air endorsement of a health product. But what if that product is being similarly endorsed by a more legitimate news website?<\/p>\n\n\n\n<p>The authors of a <a href=https://www.ama.org/"https:////doi.org//10.1177//00222437211044472/" target=\"_blank\" rel=\"noreferrer noopener\">recent <em>Journal of Marketing Research <\/em>study<\/a> find empirical evidence of just such a cascading flow of \"hype news\"\u2014news or information that is not fake but is taken out of context, exaggerated, and overgeneralized to gain public attention. For example, in response to endorsements of health products by Dr. Oz, more legitimate news outlets often post articles about the ingredients in those health products. However, the content posted by the news outlets tends use more positive language, amplifying the hype instead of rectifying it. The authors also prove that online customer reviews do little to correct the issue, while research-oriented articles are published too slowly to have a meaningful impact on correcting the hype news. These findings suggest there may be a need for greater scrutiny, not only of the products but also of the news sources that are amplifying the potentially inaccurate health benefits of these products.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\">\n<p>Content posted by legitimate news outlets tends use more positive language, amplifying the hype instead of rectifying it.<\/p>\n<\/blockquote>\n\n\n\n<p>As this topic has important practical implications for consumers, marketers, and healthcare professionals, we wanted to garner some further insights from the authors of this interesting study. In response to several of our questions, the authors provided us with some unique insights into this topic:<\/p>\n\n\n\n<p><strong><em>Q: Fake news is often detected in a social media environment, but hype news is more difficult to detect. What are some effective mechanisms and interventions to detect hype news in the healthcare context?<\/em><\/strong><\/p>\n\n\n\n<p>A: Effective regulation of these OTC products\u2014and, more importantly, endorsements\u2014could be some near-term prescriptions. On the other hand, more consumer education and warnings about potential misinformation may be helpful, so they can take the initiative to think more critically, set more reasonable expectations, and make more careful decisions. <\/p>\n\n\n\n<p><em><strong>Q:<\/strong> <strong>Some news agencies (i.e., Forbes) allow for some articles to be published that are paid for. Could it be that the news agencies that are propagating the biased information are receiving compensation? For example, it seems like less reputable OTC products are more likely than other product categories to \"pay for play\" with news outlets.<\/strong><\/em><\/p>\n\n\n\n<p>A: This could be possible. On the one hand, we included the firms\u2019 advertisement spending as a control variable in our analysis; so, this factor is well accounted for. On the other hand, our data does not allow us to test the exact reasons that may have driven the magnifying effect of the news articles. It could be simply to attract viewership, and there could be other reasons, such as your proposed \u201cpay for play\u201d.<\/p>\n\n\n\n<p><strong><em>Q: Do these products have affiliate marketing programs, whereby individuals or firms can receive compensation for referring sales? If so, could you see some of the online news sites, especially those of smaller publications, running articles that do not correct the bias because they are looking to gain affiliate revenues instead?<\/em><\/strong><\/p>\n\n\n\n<p>A: Related to our response to the first question, we observe firms\u2019 spending on promotion (which may include compensation for referring sales), but we do not see the data on how exactly a firm allocated such promotion spending. What you suggest is totally possible as another reason for news articles\u2019 magnifying effect, but unfortunately, we cannot verify it from our data.<\/p>\n\n\n\n<p><strong><em>Q: Does political identity (e.g., liberal vs. conservative) play a role in motivating news agencies to disseminate misleading health information?<\/em><\/strong><\/p>\n\n\n\n<p>A: It may depend on whether doing so will bring any benefit to a political identity. In the domain of weight-loss healthcare products, the benefit does not seem clear to me. That said, we did not examine this aspect in our paper as it is not our focus.<\/p>\n\n\n\n<p><strong><em>Q: The authors show that hype news leads to a ~30% increase in consumer searches for the recommended ingredients. Is there a similar lift for the brand names of the most popular drugs being hyped?<\/em><\/strong><\/p>\n\n\n\n<p>A: As Dr. Oz did not mention any specific brand for each recommended ingredient, we did not conduct such an analysis on brand names. However I agree this is an interesting additional check to make in the future; one may collect search interest data for each brand and follow the similar econometric analysis used in the paper to examine if there is also brand lift.<\/p>\n\n\n\n<p><strong><em>Q: Do results and the Oz effect hold for non-OTC products?<\/em><\/strong><br>A: Our research is relevant to OTC health products and has no bearing on the purchase and consumption of prescription medications. For other specific product categories, new data and empirical studies need to be conducted to make an accurate claim.<\/p>\n\n\n\n<p><strong>Read the full article:<\/strong> <\/p>\n\n\n\n<p>Zijun (June) Shi, Xiao Liu, and Kannan Srinivasan (2022), \"<a href=https://www.ama.org/"https:////doi.org//10.1177//00222437211044472/" target=\"_blank\" rel=\"noreferrer noopener\">Hype News Diffusion and Risk of Misinformation: The Oz Effect in Health Care<\/a>,\" <em><a href=https://www.ama.org/"https:////www.ama.org//journal-of-marketing-research///" target=\"_blank\" rel=\"noreferrer noopener\">Journal of Marketing Research<\/a><\/em>, 59 (2), 327\u201352.<strong> <\/strong>doi:<a href=https://www.ama.org/"https:////doi.org//10.1177//00222437211044472/" target=\"_blank\" rel=\"noreferrer noopener\">10.1177\/00222437211044472<\/a>.<\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n\n","post_title":"How News Outlets Amplify the Hype of Potentially Unhealthy Health Products","post_excerpt":"A new Journal of Marketing Research study shows that most attempts to clarify health claims made by people like Dr. Oz only serve to spread dubious information further.","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-news-outlets-amplify-the-hype-of-potentially-unhealthy-health-products","to_ping":"","pinged":"","post_modified":"2024-01-03 16:56:25","post_modified_gmt":"2024-01-03 22:56:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.ama.org\/?p=111967","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":110931,"post_author":"18","post_date":"2022-11-23 19:38:47","post_date_gmt":"2022-11-23 19:38:47","post_content":"\n\n\n<blockquote class=\"wp-block-quote\">\n<p>Good advertising does not just circulate information. It penetrates the public mind with desires and belief.<\/p>\n<cite>William Burnbach<\/cite><\/blockquote>\n\n\n\n<p>How many times have you come across \"verified\" news informing you about a miraculous new colon cleanser or weight loss product and wondered whether to give it a try? In a <a href=https://www.ama.org/"https:////www.ama.org//journal-of-marketing-research///" target=\"_blank\" rel=\"noreferrer noopener\">recent <em>Journal of Marketing Research<\/em> article<\/a>, professor Anita Rao explores the important topic of \u201cfake news\u201d advertising and its impact on attracting new customers for the advertised products. A potential consumer has multiple ways of learning about a product, one of which is via advertisements that present fake news as legitimate. As a prevalent occurrence in society that can be used to potentially dupe consumers into purchasing inferior products, the Federal Trade Commission (FTC) ordered a nationwide shutdown of over 35 fake websites run by 10 parent companies in 2011.<\/p>\n\n\n\n<p>Using this event as a setting, the author uses a difference-in-difference approach to quantify the effects of the FTC shutdown and understand how it impacted merchant site visits via other advertising channels. The results of the study are thought-provoking: Through a series of regression analyses, the author discovers a significant decrease in merchant site visits after the FTC shutdown, using consumer complaint data to supplement original purchase numbers. However, the riveting fact is that not all traffic to the affected merchant sites slowed or stopped, with some experiencing positive substitution effects from other means of promotion, namely organic and legitimate advertisements.<\/p>\n\n\n\n<p>So what are the final takeaways? The author\u2019s inferences from this paper have important implications for managers and policymakers. The results indicate that policymakers should keep their eyes open for fraudulent activities like fake news sites and merchant sites that are duping consumers and selling inferior products. Moreover, to preserve good will and consumer loyalty, managers should plan their promotional activities so that they in no way provoke or wrongly motivate a consumer to purchase a product that will not live up to its claims.<\/p>\n\n\n\n<p>We had a chance to contact the author to learn more about their study and gain additional insights.<\/p>\n\n\n\n<p><strong><em>Q: <\/em><\/strong><strong><em>What inspired you to write this paper? How did you approach your literature review (from deceptive advertising in marketing, or fake news in political science)? <\/em><\/strong><strong><em>W<\/em><\/strong><strong><em>hy did choose the term \"fake news advertising\"<\/em><\/strong><strong><em> as a focal concept<\/em><\/strong><strong><em>?<\/em><\/strong><strong><em><\/em><\/strong><\/p>\n\n\n\n<p>A: I was intrigued by the fact that in the political domain, uncovering the treatment effect of fake news is hard: Those who consume fake news might be a select set of people, and outcomes (e.g., votes) in the presence and absence of fake news might have been the same. So how does one know whether the fake news had an effect? Without observing behavior prior to (or in the absence of) fake news, attributing the effect to the treatment (fake news exposure) is tough. Second, I came across the FTC actions in 2011 that shut down 10 fake news operating companies. This combined with the fact that in marketing we are equipped with rich individual-level data with repeat observations, led me down the path of disentangling the treatment effect: Do such fake news stories change consumers' purchase propensity, or are they viewed by a select set of consumers already in the market for such products? Answering this question is feasible with the kind of data we have access to in marketing.<\/p>\n\n\n\n<p>Digging deeper I realized \u201cfake news\u201d style marketing (i.e., ads designed to look like editorial content) is not new \u2013 it has been present since the advent of newspapers. Therefore, the term fake news advertising is more applicable. Moreover, I believe the review team had suggested this term to be more precise and to distinguish it from the more general \u201cfake news.\u201d<\/p>\n\n\n\n<p><strong><em>Q:<\/em><\/strong><strong><em> How did you go about identifying alternative\/confounding events (e.g., negative publicity from the press, Google algorithms)? Is there a systematic way that you usually approach this issue?<\/em><\/strong><strong><em><\/em><\/strong><\/p>\n\n\n\n<p>A: Yes. When trying to establish causality using an event study, you want to be able to rule out everything else that could possibly have happened and could serve as confounds. So you think of as many alternatives that could have caused similar patterns and try and rule them out. In addition, it is good practice to present to various audiences to the extent you can: Through presentations you get to hear alternative explanations, some of which you might have thought of and some which are new. You are on the right path if you can convince the audience or think of additional data\/analysis that will satisfy the question.<\/p>\n\n\n\n<p><strong><em>Q:<\/em><\/strong><strong><em> The way you empirically find the lag period of <\/em><\/strong><strong><em>two<\/em><\/strong><strong><em> months was brilliant. How did you arrive at this empirical verification, and was it difficult to persuade reviewers to accept it?<\/em><\/strong><strong><em><\/em><\/strong><\/p>\n\n\n\n<p>A: Thank you. It was indeed an interesting and convincing find. It actually reassured me that the data is reliable: complaints take time to be reported and seeing that in the data was reassuring. I think the review team also liked the idea and were supportive of using this analysis.<\/p>\n\n\n\n<p><strong><em>Q:<\/em><\/strong><strong><em> For the robustness check of the launch of other fake news sites, you came up with two creative methods to approach this issue, how did you come up with them?<\/em><\/strong><strong><em><\/em><\/strong><\/p>\n\n\n\n<p>A: The question was whether these companies, after facing the FTC shutdown order, now created alternative fake news site names in a whack-a-mole manner. So, how does one identify if any new fake news sites are popping up? In my setting, the fake news sites have unique names \u2013 they mimic real news sites so they have words like \u201cdaily,\u201d \u201cnews,\u201d and \u201creport.\u201d Because they need to create multiple fake news sites, they often combine these words with a number (report6, news9, etc.). Those two patterns were key in coming up with this approach of identifying whether new fake news sites were being created.<\/p>\n\n\n\n<p><strong><em>Q: <\/em><\/strong><strong><em>Considering that the results talk about negative spillovers yet positive substitute effects, what implications do you think this<\/em><\/strong><strong><em> research<\/em><\/strong><strong><em> can<\/em><\/strong><strong><em> provide <\/em><\/strong><strong><em>for managers and marketers?<\/em><\/strong><strong><em><\/em><\/strong><\/p>\n\n\n\n<p>A: Fake news style advertising seems to work. However, the message is geared more toward policymakers and implications for consumers. It is easy for consumers to be persuaded by such messages, as can be seen by the large treatment effect. A few new consumers continue reaching the site through regular ads, but the draw is not as great as with fake news ads, which are able to bring in many more new visitors. I think this underscores the role of regulatory oversight in domains where consumers are likely to be susceptible to such false advertisements.<\/p>\n\n\n\n<p><strong>Read the full article here:<\/strong><\/p>\n\n\n\n<p>Anita Rao (2022), \"<a href=https://www.ama.org/"https:////doi.org//10.1177//00222437211039804/" target=\"_blank\" rel=\"noreferrer noopener\">Deceptive Claims Using Fake News Advertising: The Impact on Consumers<\/a>,\" <em><a href=https://www.ama.org/"https:////www.ama.org//journal-of-marketing-research///" target=\"_blank\" rel=\"noreferrer noopener\">Journal of Marketing Research<\/a><\/em>, 59 (3), 534\u201354. doi:<a href=https://www.ama.org/"https:////doi.org//10.1177//00222437211039804/" target=\"_blank\" rel=\"noreferrer noopener\">10.1177\/00222437211039804<\/a><\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n","post_title":"Is Acai Your Next Miracle Weight-Loss Berry? Analyzing the Impact of Deceptive Claims Made by Fake News Ads on Consumers","post_excerpt":"Do ads that disguise themselves as news articles actually bring in new customers? A new Journal of Marketing Research study finds out.","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-acai-your-next-miracle-weight-loss-berry-analyzing-the-impact-of-deceptive-claims-made-by-fake-news-ads-on-consumers","to_ping":"","pinged":"","post_modified":"2024-01-03 16:56:27","post_modified_gmt":"2024-01-03 22:56:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.ama.org\/?p=110931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":109989,"post_author":"145338","post_date":"2022-11-08 05:02:00","post_date_gmt":"2022-11-08 05:02:00","post_content":"\n<iframe src=https://www.ama.org/"https:////anchor.fm//jm-buzz//embed//episodes//Does-COVID-Related-Advertising-Lead-To-More-Social-Distancing--How-Brands-Can-Influence-Social-Outcomes-e1safp7/" height=\"161px\" width=\"100%\" frameborder=\"0\" scrolling=\"no\"><\/iframe>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>The initial public policy response to the COVID-19 pandemic was rife with chaotic decision making and wide variations in the implementation of governmental guidelines. Social distancing was the primary intervention proposed by most governmental agencies, but these measures\/mandates saw mixed results because many were unwilling to comply due to factors such as politicization, widespread fake news, and lack of a scientific temper.<\/p>\n\n\n\n<p>Brands, for their part, were quick to incorporate COVID-19-related narratives in their advertising strategies. While such advertisements likely influence brand-related outcomes (such as sales and customer awareness), it is not clear whether they impact social outcomes unrelated to the brand\u2014the so-called \u201cspillover\u201d effects. In a <a href=https://www.ama.org/"https:////doi.org//10.1177//00222429221130011/" target=\"_blank\" rel=\"noreferrer noopener\">new <em>Journal of Marketing<\/em> study<\/a>, we assess the impact of COVID-19-related brand advertising on social distancing behavior.<\/p>\n\n\n\n<p>We analyzed advertising and mobility data with quasi-experimental econometric methods and found that, in general, counties where brands ran a greater number of COVID-19-related advertisements showed higher levels of social distancing. This societal \u201cspillover\u201d of advertising was substantial. For example, a 1 percentage point increase in COVID-19-related advertising led to an average of 466 additional people (compared to 2019) staying fully at home each day. This effect was more pronounced for larger markets such as New York (6,527 people) and Los Angeles (5,612 people). Given that social distancing was critical to preventing virus spread (especially before the vaccine was developed), this spillover effect may have contributed to saving lives.<\/p>\n\n\n\n<p>We also find heterogeneous advertising effects based on brand-level and demographic variables. Our results indicate that the effect of advertising on social distancing behavior is amplified among more educated populations but attenuated in more conservative and rural counties, which tend to be more white. Overall, our findings bear substantive implications for the power of brand advertisements to affect important societal outcomes and for government communication strategies. Our findings have implications for other public health emergencies (e.g., climate change) as well.<\/p>\n\n\n\n<p>Could brand advertising fill the void when government agencies fail to adequately respond to public crises? The answer seems to be an overwhelming yes. A recent study by the Edelman Trust Barometer found that individuals tend to trust businesses (61%) more than governments (53%), and an astounding 86% believe that CEOs must lead on societal issues while 68% want CEOs to step in where governments fail. Our results concur: COVID-19-related brand advertising effects on social distancing behavior are almost 11 times stronger in the absence of a cogent policy response (e.g., shelter-in-place, masking) from government agencies. This suggests that brands may play a critical role in weathering public crises.<\/p>\n\n\n\n<h2><strong>The Effect of Salience<\/strong><\/h2>\n\n\n\n<p>We identify salience as one of the primary underlying psychological mechanisms that help explain our findings. When the pandemic was less prominent or salient in people\u2019s minds, brand advertising played a more significant role in making the pandemic and its consequences more salient in their mobility-related decision-making processes. We also find that the brand advertising effects vary based on several factors such as product category and demographics. For example, ads from certain product categories such as entertainment, alcohol and tobacco, and politics have a negative effect on social distancing behavior. Further, the effects are stronger in areas with greater population and higher levels of education.<\/p>\n\n\n\n<p>Although to a much lesser extent compared to brands, federal, state, and local government agencies also engaged in COVID-19-related advertising. But we find that government ads, overall, do not have a significant effect on people\u2019s social distancing behavior, although the effects seem to vary from county to county.<\/p>\n\n\n\n<h2 id=\"h-managerial-implications\"><strong>Managerial Implications<\/strong><\/h2>\n\n\n\n<p>Our study offers the following guidance to brand managers and policymakers:<\/p>\n\n\n\n<ol type=\"1\">\n<li>Brands have tremendous opportunities to disseminate socially relevant messages embedded in the narratives of their TV ads to impact socially beneficial outcomes. Brands can be strategic about their advertising not only from a brand-outcome standpoint but also from a societal-outcome standpoint.<\/li>\n\n\n\n<li>Government agencies may need to rethink their communication strategies when dealing with major public health crises requiring public compliance with critical safety guidelines. They may benefit from adopting alternative means of communication to minimize reactance or annoyance. This may involve collaborations with trusted public figures and\/or social media influencers or offering incentives to firms in certain categories (i.e., those with increased ad effectiveness) to incorporate relevant narratives in communications directed at their followers and consumers, respectively.<\/li>\n\n\n\n<li>Brand managers and policymakers could use the findings from this study to devise more efficient, targeted, and timely communication strategies to deal with future health crises. Our findings are generalizable to other public crises, such as climate change. Brand ads with relevant narratives may help increase the salience of the crisis and influence critical mitigative behaviors, such as promoting recycling and switching to clean energy.<\/li>\n<\/ol>\n\n\n\n<p><a href=https://www.ama.org/"https:////doi.org//10.1177//00222429221130011/" target=\"_blank\" rel=\"noreferrer noopener\">Read the full article<\/a>. <\/p>\n\n\n\n<p><strong>From: <\/strong>Ayan Ghosh Dastidar, Sarang Sunder, and Denish Shah, \u201c<a href=https://www.ama.org/"https:////doi.org//10.1177//00222429221130011/" target=\"_blank\" rel=\"noreferrer noopener\">Societal Spillovers of TV Advertising \u2013 Social Distancing During a Public Health Crisis<\/a>,\u201d<em> <a href=https://www.ama.org/"https:////www.ama.org//journal-of-marketing///" target=\"_blank\" rel=\"noreferrer noopener\">Journal of Marketing<\/a><\/em>.<\/p>\n\n\n\n<p>Go to the <em><a href=https://www.ama.org/"https:////www.ama.org//journal-of-marketing///" target=\"_blank\" rel=\"noreferrer noopener\">Journal of Marketing<\/a><\/em><\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n","post_title":"Can Brands Influence Social Outcomes? The Impact of COVID-19-Related Brand Advertising on Social Distancing Behavior","post_excerpt":"According to a new Journal of Marketing study, brands have the power to impact socially beneficial outcomes through socially relevant messages embedded in the narratives of their TV ads.","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-brands-influence-social-outcomes-the-impact-of-covid-19-related-brand-advertising-on-social-distancing-behavior","to_ping":"","pinged":"","post_modified":"2024-01-03 16:56:31","post_modified_gmt":"2024-01-03 22:56:31","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.ama.org\/?p=109989","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":102343,"post_author":"12","post_date":"2022-06-22 14:25:55","post_date_gmt":"2022-06-22 14:25:55","post_content":"\n<p>Over the last few years of the COVID pandemic, social unrest, political turmoil, and the Great Resignation across the globe, many workplaces have realized the necessity of considering how societal changes affect employee retention and well-being. It is no longer just internally important to involve DEI in the workplace. Now, many consumers demand transparency and various new regulations to publicize diversity statistics have created an urgency when it comes to DEI progress. As the approach to diversity, equity, and inclusion grows, so does the role of leaders within organizations. This has led to the emerging role of DEI leaders. A Chief Diversity Officer is now a common position at leading companies and corporations across the globe.<\/p>\n\n\n\n<h2><a><\/a>The Emerging Role of DEI Leaders in Corporate Leadership<\/h2>\n\n\n\n<p>Many companies in search of change are increasing their recruitment of DEI leaders. Many workplaces are pledging more investment and support into creating more diverse and equitable environments. <a href=https://www.ama.org/"https:////www.ama.org//marketing-news//how-to-hire-for-diversity-equity-and-inclusion///">Hiring for diversity, equity, and inclusion<\/a> is not just a trend. It is a movement toward a more equitable, diverse, and inclusive workforce.<\/p>\n\n\n\n<h3><a><\/a>What is DEI?<\/h3>\n\n\n\n<p>DEI stands for diversity, equity, and inclusion. A wide range of ideas and experiences in any organization is the best way to achieve growth, innovation, and success. In fact, <a href=https://www.ama.org/"https:////www.ama.org//marketing-news//how-dei-efforts-lead-to-better-employee-retention///">DEI efforts lead to better employee retention<\/a>. Employees who are supported and comfortable at their companies will want to continue working for those companies.<\/p>\n\n\n\n<h3><a><\/a>What is a DEI Leader?<\/h3>\n\n\n\n<p>Typically, DEI officers sit in the People or Human Resources (HR) departments. Whether your title is technically \u201cDEI Leader\u201d or not, every business owner should be DEI-competent. This is important for creating spaces and opportunities for people from all different walks of life to be listened to and appreciated within their workplaces. There are several <a href=https://www.ama.org/"https:////blog.onmogul.com//top-100-leaders-in-dei-in-2021/">examples of amazing DEI leaders<\/a> at companies across the country you can look to.<\/p>\n\n\n\n\n\n<h3><a><\/a>DEI Leader Responsibilities<\/h3>\n\n\n\n<ul><li>Understanding the systemic challenges of their employees and community<\/li><li>Welcoming and creating diversity in the workplace<\/li><li>Tackling issues around equity, including policies<\/li><li>Making sure that those who are diverse are welcomed and feel welcomed<\/li><\/ul>\n\n\n\n<h3><a><\/a>Characteristics of Effective DEI Leaders<\/h3>\n\n\n\n<p>The answer when searching for someone to lead your company\u2019s diversity, equity, and inclusion efforts is not to simply hire the nearest woman or BIPOC individual. You want to find someone with expertise in DEI and implementing these efforts.<\/p>\n\n\n\n<h4><a><\/a>Curiosity<\/h4>\n\n\n\n<p>Any good leader is also a learner. A DEI leader needs to be open-minded, curious, and respectful of others. They must be able to learn from the experiences and perspectives of other people who may lead very different lives from theirs. Curiosity means that DEI leaders are proactive, not just reactive. They are constantly looking for ways to improve and move beyond the status quo. They will ensure that the organization is considering the voices and opinions of as many different kinds of people as possible.<\/p>\n\n\n\n<h4><a><\/a>Empathy<\/h4>\n\n\n\n<p>An excellent DEI leader has the desire to not only understand other people\u2019s points of view, but to empathize with them and understand their outlooks. DEI leaders are able to listen without judgment and imagine the world from other viewpoints.<\/p>\n\n\n\n<h4><a><\/a>Humility<\/h4>\n\n\n\n<p>There is no such thing as a DEI leader who will understand all perspectives. An excellent DEI leader will realize this. Self-awareness and humility are key characteristics for any DEI leader. DEI leaders should be aware of their unconscious biases and be able to admit their mistakes.<\/p>\n\n\n\n<h4><a><\/a>Courage<\/h4>\n\n\n\n<p>The job of a DEI leader can be uncomfortable at times. It can be awkward to question the status quo and to implement change. That is why a good DEI leader must be courageous. It will be their job to initiate uncomfortable conversations in order to instigate positive change.<\/p>\n\n\n\n<h2><a><\/a>What is a Chief Diversity Officer?<\/h2>\n\n\n\n<p>At your company, a DEI leader might have the title of Chief Diversity Officer. The <a href=https://www.ama.org/"https:////www.forbes.com//sites//mariaminor//2021//05//03//heres-the-bottom-line-reason-why-companies-need-a-chief-diversity-officer//?sh=5e90135e7bc3\%22>Chief Diversity Officer is in charge of the company\u2019s diversity<\/a>, equity, and inclusion (DEI) programs. According to a\u00a0Russell Reynolds study, the demand for Chief Diversity Officers (CDOs) increased dramatically in the last three years. In fact, more than half (63%) of the S&P 500 appointed or promoted CDOs.<\/p>\n\n\n\n<h2><a><\/a>Tips for DEI Recruitment<\/h2>\n\n\n\n<p>Leadership is not the only place in your company where your commitment to DEI should be evident. Recruitment is one of the strongest paths to change for many companies. It is also important to increase representation on as many teams and departments as possible. The good news is that conversations surrounding DEI hiring are no longer taboo. This makes it easier for systems to evaluate and adjust in order to eliminate bias and open up opportunities for more people.<\/p>\n\n\n\n<p>One of the common struggles of DEI recruitment is the desire to hire more diverse individuals, but an inability to find diverse candidates. Many companies rely on personal referrals from current employees, but if the current employees\u2019 networks are not very diverse, then the hiring will not be diverse.<\/p>\n\n\n\n<p>There are some approaches to DEI recruitment and hiring that you can take. For example, some companies mandate that for every position, at least one diverse candidate is hired. Others assemble a diverse panel of interviewers to share the responsibility of hiring. Other companies measure hiring managers based on the diversity of their hires and the overall workforce.<\/p>\n\n\n\n<h2><a><\/a>How Marketing Professionals Can Support DEI Leaders<\/h2>\n\n\n\n<p>There are several ways that marketing leaders can support CDOs in implementing and expanding their efforts, including:<\/p>\n\n\n\n<ul><li>Partnering with the DEI leader at your organization to demonstrate the impact and importance of DEI efforts<\/li><li>Use KPIs to track the progress of your organization\u2019s DEI efforts<\/li><li>Tout the importance of your partnership both internally and externally and activate other teams in your organization to get on board<\/li><\/ul>\n\n\n\n<h2><a><\/a>The AMA\u2019s Commitment to DEI and DEI Leaders<\/h2>\n\n\n\n<p>The American Marketing Association is dedicated to spearheading the movement towards more <a href=https://www.ama.org/"https:////www.ama.org//dei-diversity-equity-inclusion-marketing///">diversity, equity, and inclusion in the marketing industry<\/a> and beyond. We offer a variety of virtual trainings and events like \u201cThe DEI Imperative: Fundamentals for Marketers\u201d and \u201c<a href=https://www.ama.org/"https:////www.ama.org//events//training-series//decoding-dei-for-marketers///">Decoding DEI for Marketers<\/a>\u201d to spearhead the education and training of marketers in these important areas. Become an AMA member today!<\/p>\n","post_title":"The Emerging Role of DEI Leaders","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-emerging-role-of-dei-leaders","to_ping":"","pinged":"","post_modified":"2024-01-22 13:41:00","post_modified_gmt":"2024-01-22 19:41:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.ama.org\/?post_type=ama_marketing_news&p=102343","menu_order":0,"post_type":"ama_marketing_news","post_mime_type":"","comment_count":"0","filter":"raw"}]" />

Ethics

Marketing ethics refers to the process of applying morality principles to the execution of marketing campaigns and services. Advertising and promotion are a few of the most relevant applied marketing ethics areas and they often overlap with media ethics – which differ from that of marketing. Marketing ethics is also known as a process of generating consumer intrigue and relationships as well as stakeholder values. Here you will find a collection of research insights and marketing news articles regarding ethics.

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