Internet marketing practices have raised a number of ethical and legal questions. Why is invasion of privacy perhaps the number-one online marketing concern?
What will be an ideal response?
Invasion of privacy is perhaps the toughest public policy issue now confronting the direct marketing industry. Consumers often benefit from database marketing; they receive more offers that are closely matched to their interests. However, many critics worry that marketers may know too much about consumers' lives and that they may use this knowledge to take unfair advantage of consumers. At some point, they claim, the extensive use of databases intrudes on consumer privacy. Consumers, too, worry about their privacy. Although they are now much more willing to share personal information and preferences with marketers via digital and social media, they are still nervous about it. In these days of "big data," it seems that almost every time consumers post something on social media or send a tweet, visit a Web site, enter a sweepstakes, apply for a credit card, or order products by phone or online, their names are entered into some company's already bulging database. Using sophisticated big data analytics, direct marketers can mine these databases to "microtarget" their selling efforts. Most marketers have become highly skilled at collecting and analyzing detailed consumer information both online and offline. Even the experts are sometimes surprised by how much marketers can learn.
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Which of the following is an expected consequence of the implementation of the North American Free Trade Agreement?
A. Low-skilled jobs will be moved out to Mexico resulting in lowering of average wage rates in the United States and Canada. B. Increased imports from Mexico will help reduce the huge trade deficit for United States and Canada. C. Lower incomes of the Mexicans would allow them to import fewer U.S. and Canadian goods, thereby decreasing demand. D. A large number of Mexican firms will hire low-skilled workers from the United States. E. Some U.S. and Canadian firms would move production to Mexico to take advantage of lower labor costs.
Ethical e-mail marketers are advocating that:
A) they be allowed to send mass online messages with the proviso that consumers can then opt-out of future communication. B) there be no opt-out opportunity for consumers once they accept an initial e-mail. C) there be stringent opt-in requirements. D) they need not include their privacy policy in an e-mail or its link. E) all use of e-mail for commercial purposes be forbidden.