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CHAPTER NO .1
INTRODUCTION
Background
Ethics are the set of values that shape the decisions and
create organization. Keen ethics in marketing this shown
the applying of principles intentionally, that offenses
or moral values, and wrongs, for marketing resolution, andcreating behavior, that place into practice in an
organization. Ethics were a branch of philosophy, which
addresses questions about honesty, that all will be about
concepts that were good or bad, right and wrong, fairness,
and good worth. arketing Ethics addresses the direct
ethical questions, and misunderstandings or challenges,
which raised though the important marketing as ethical
activity !urphy, "##"$.
arketing ethics was some like a fieldwhich could be seen
as on the way under the area, of so that the ethical issues
were frequently near to linked, with the official ones and
also the procedure of public policy, got with the marketers
that annoyed to unethical behavior. %his research was
required to cross the point between ethical and societalquestions. %his was the ma&or assessment, of the marketing
effort to society.
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%he criticism and problems they recognized, and then they
gave a file of the topics, which were given to the
marketing ethics, that were the values of the marketing
structure, of the consumer privileges product safety
personal selling. arketing scholars could help for
delineated the areas, which were related within the
business and society ground !'errel, "##($.
Ethics was an area of interest which was among researchers,
within the business follower, investor, many years. )n
these marketing researchers, that have been studied ethics
to describe, and e*plained, to the predicted behavior. +othe ethics were distinctions between the right, and wrong.
usinesses are confronted with ethical decision making,
every day and whether employees decided to used ethics as a
guiding force, when conducting business that was something,
that business leaders such as managers. arketers are
ethically responsible for the marketed image, and also the
image that a product portrayed. +o the marketers had to
understand, that what good ethics were, and how to practice
those good ethics in different marketing campaigns, and had
to reached a targeted audience and to gain trust from
customers !+mith, -$.
'undamentally marketing ethics were not limited, to the
ground of marketing only this had control over the fields
of the life, and the most importantly, structure ofsocially leading identities for people, and the influencing
the people, is the morally important perceptions of other
people, and if they can give to those perceptions or
interactions, going seriously wrong those activities had
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behave on basic ethical questions !/aul, "##$.
Problem Identiication
%he previous research studies are conducted to find out the
role of organization, in creation of consumer0s awareness,
regarding their ethical rights, in promotional activities
but its role in /akistani conte*t is ignored. )n /akistan,
ethical marketing is a very new endeavor, as most of the
companies1organizations, and consumers as well do not
comprehend, the importance of ethics, in the field of
marketing. 2n one hand the consumers are unaware, of their
ethical rights, and on the other hand companies do not know
their ethical responsibilities. %his research thesis is an
attempt, to know consumers perception, about the
promotional activities as !are they affected or not$.
Problem !tatement
%his study tries to identify the consumer0s awareness,
towards their ethical rights, and the organization0s
responsibilities, towards their customers.
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Re"earc# $ue"tion
what is the level of consumer awareness of their
ethical rights in product consumption3
4re the organizations fulfilling the responsibility
towards their customers with reference to the
ethical business practices3
Rationale o t#e "tud%
)n business, 5onesty and truth in information is of
critical importance. %he customer needs to be sure that
he1she can rely, on the information provided by the
company, if there is any chance of having a good client6
business relationship. )n promotion, honesty can help
negate, bad publicity. )nstead of falsely denying claims
against it, a business can patch up its image by changing
what0s wrong and letting its customers, know about these
positive changes. %here has been no general issue, but this
study will try to make an opinion ,that how an 2rganization
can improve their promotional activities, with adding up
with the ethics the ma&or enefit of this research, is to
aware consumers, that what are their ethical rights,
towards the /romotion of different products according to
their culture, as well and aware different 2rganization
about their ethical responsibilities, regarding their
customers and also the promoters should be aware of the
ethical issues towards marketing 2f promotional activities.
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Ob&ecti'e o t#e "tud%
%he key ob&ective of this research is to recognize the role
of organization in creation of consumer0s awareness
regarding their ethical rights in promotional activities.
%he brief ob&ectives of this study are penned as below7
%o evaluate the level of consumer awareness regarding
their ethical rights.
%o evaluate the level of organizations regarding
responsibility towards customers.
%o evaluate the role of ethics in promotional
activities in /akistan.
!co(e o t#e "tud%
%his study is associated with the role of organization, in
creation of consumer0s awareness regarding their ethical
rights, in promotional activities. +o this research paper
is focusing on the employees, 8 customer of various
advertising,agencies,)nterflow,9:%,Ericson,.comm,advertisi
ng,idsa,4dd flow, 4dd, group, orient, media, channel ;,
having age group ranging from "# years to onwards.
5
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)imitation"
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Theoretical Framework
)ndependent >ariables ariable
7
?onsumer awareness
towards their ethical
rights
2rganizational
responsibilitytowards consumers
/romotional
activities
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H%(ot#e"i"
5#7 2rganization0s responsibility towards consumers has
significant impact on creation of consumers0 awareness
regarding their ethical rights.
5-7 2rganization0s responsibility towards consumers has no
significant impact on creation of consumers0 awareness
regarding their ethical rights.
5#7 =ights has a significant impact on promotional
activities of the organization.
5"7 =ights has no significant impact on promotional
activities of the organization.
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CHAPTER NO. *
)ITERATURE RE+IE,
arketing ethics were some what that practices the ethics
which deals with, ethical values that were at the back of
the systems, and the rules of the marketing. %he various
areas of the marketing ethics, that promote promotion cover
with media ethics. +o the arketing ethics were the ethical
principles, which narrate the marketing. %he arketing
ethics came under age of the -#s , %his was the important
attention that was loyal to this topic !gilberts, "###$.
)n the last decade the academic and the business press was
not longer e*traordinary to observe, those published
articles, which were e*amined by the academic details, and
e*perimental results, from the topic. %his field then moved
from the earlier thought as on o*ymoron stage, to one of
academic power. +o that association occurred on the e*cess
of the fairly short period of time. /reviously articles on
the ethical issues in a marketing showed up, in the -@#s
and also the part of thoughtful essays .%his premature
empirical work deals with that decision6making process,
which tended to be the undersized, of the speculative
foundation. +o in this =esearch the belief of the marketing
ethics decided, to be sustained in the -;#s that is with
another work on this sub&ect !Ayon, "##"$.
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)n the time of -B#s a most important research was devoted
to the e*ploratory of ethics in marketing !Aaczniak, -C$.
E*periment onthe state of the marketing ethics research at
the time when it was completely lift up characterized, as
that they having a broader of treatment greater educational
visibility, and the e*panding theoretical, and empirical
foundation. %hese are the reviews which were came under to
had same captured the rank of the marketing ethics, that
were the focal spot, on this .%his were all about the
completion of the research, and the practices in marketing
in surplus of the last decade.
%he relative need of normative articles, reflected the
difficulty in creating the non6controversially, ultimate
ethical valuation, of marketing decisions and practices0 so
for the both of these was consistently significant. %his
was ?onsider to be the considerable, physical, and fiscal
spoil that could be the consequence from the unethical
decisions, and also knew about the product safety, the
truth in promotion, and fair dealing, in pricing. %he
reviews of those decisions were as the ethical or
unethical, in the result by individuals, that inflated by
the decision, and the public policy makers, that may be
improved informed by echo theories, 2f normative marketing
ethics !?ahill, "##($.
%he positive developments in marketing ethics, in recent
years contained appreciation, of the variation between the
both of the normative1descriptive and analytical work, in
this position. %his ethics concerned with formulating the
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vital ethical values, that where the descriptive ethics,
concerned with the logical studies, of ethics by communal
scientists, with usual and business press treatments, of
marketing issues. 4nd y this it includes with the purpose
of the works, which look at the vital ethical marketing,
concepts and the values that were the marketers that should
be aware about being ethical. 'or this it would be classify
a number of this hard work as normative. %he variation
between these both empirical and theoretical were a normal
definition of ethics study and one of which had lead to be
important argument in e*acting of the pages of usiness
Ethics periodically which will not be the openly e*aminedhere !+inghapakdi,"##B$.
Dormative ethical theories had the correct based ethics
that have been restricted from some of the debates in the
earlier years where as huge theoretical paradigms appeared
in the -#s. 4 model of marketing ethics that based upon
the &ob and it claims that the adopting the more gentle
scope reading for this marketing was an opportunity that
had to be an ethical, organizer in organization !%hompson,
-($
:hen in this field the stakeholders came into a discussion,
that to resolved the ordinary dilemmas that were more in
positive outcomes that were apparent. %he ma&ority recently
integrative social contracts, theory that had planned asthe giving that of logical structure for resolving that
ethical issues, which could be occurred cross wise in
multiple communities, and where as the theoretical
proposals came up from the different philosophical that
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they had broadened the normative base for marketing ethics.
Dormative ethical theory that e*pected considerable
awareness, during the -#s, was virtue ethics. %his
elaborated on the applicability of good value .marketing
mi* variables were using that theory for selling, the
formula in that developed countries .%heir they /ro&ected a
structure, to put together good value ethics into marketing
theory, and established its applicability in case study
!Kirk, "##-$.
'ocus on the :hile difficult to operationally, the focus onthe good value that were showed, a theory that notify the
marketing0 in view of the fact that personal decision were
significant, in making appropriate ethical decisions. %here
can be an vital call for to change, the priority and also
to accept those services that supported the wealth, over
the worldwide interests and as to strengthened the primary
values, that came form the starting point of human
civilization, that every one over the planet concerned and
had high vision for everyone, and also for the natural
environment, patience and harmony, and even the search of
peace. %he world agreement was welcomed as peoples0 paper
on condition that an ethical framework similarly the
appropriate to guiding the choices of the persons,
companies and states.
arketing the area which regularly viewed as fundamentally,
unethical but this was the fact that governed by rule, and
values of behavior &ust like any other field. /eople who
actively work in the marketing field, were pro&ected to
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study and put up with the ethical standards, of the
industry, and academics concerned in the study of marketing
also looked at how ethics were applied. )n this study
marketing ethics focused in the region of two most
important concerns, that one was from political philosophy,
and the other one was from business dealings practice. %he
view from the political side, it was argued that ethics in
marketing was growing the profit, for the depositors and
where as it argued that market was responsible for all of
the consumers. 5ere %he ethical concern of the targeting
sections were for the spending of outmoded, or risky
products, and also for that services, which were seeingthrough the basis of labor statement, regarding reasonable
treatment, and reasonable pay to all of the employees and
see6through about the environmental risks, of the ethical
issues that related to product ,or service, which being
clear regarding the ingredients that were being used, in
the products or service, and they use hereditarily adapted
organisms ,at ease source coded in the case of software
appropriate category, which the ethics of statement of the
risks in using the product, or services, health risks or in
financial risks and protection risks etc .
%he ethical responsibilities of any marketers in
observational research, that defending stakeholders from
the ethical research agreemented. %his research was for a
marketing purpose, which wants to be seen to hold to e*actethical practice, due to the direct border which had with
the public. even though there were a accessible
frameworks, and codes which deals with ethics of
research which had a new technology. %hat makes gaps in
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procedure, and practice, for marketing researchers.
arketers0 responsibility, had to defend stakeholders,
e*aggerated by their actions, that were recognized but the
most of the service employees were uncovered stakeholders,
who were frequently ignored by ethical guidelines. ethics
in marketing research in relative to retail observational
research, the conflicts, and challenges , ethical
responsibility, presented to be continue, in the e*tended
run as well as efficient and effective may be ensured.
)n general the most unkind accuses regarding this lack of
ethics were to be advertising from the group which ofmarketing communication techniques and this was the one
which were with the highest degree of treatment of
consumer0s awarded. %his was used by organization, to send
messages with the use of moving some answers of perceptual
in the targeted public. %he advertising had e*act
functions, it informs the public inspiration, in primary
demand, that had persuades consumers, ne*t to creation of a
selective demand, and it creates comparisons, with the goal
of providing the advantage and to maintain consumer0s
interest, for trademarks and products. 4nd this had a
series of characteristics that present certain specificity
and make known controversies about the ethics.
%he literatures of this marketing ethics were
differentiating, between the both of the descriptiveapproaches, and normative approaches. far as the
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population0s .Dormative approaches make out proper values,
and the methods that offer reason for the &udgments, that
what was the right one and wrong. Dormative marketing
ethics concerned with the prescribed, what managers should
had to perform and when they faced with the ethical issue.
+o %he =eviews of the marketing ethics literature e*plain
that there were significant quantities of descriptive
contributions but far6off less normative contributions.
%he Ethical questions arises here, because the sales
presentation was the most usual system, by which marketing
council could evaluated performance , pressures which couldbe e*isted in dilemmas of the ethics. where as the pressuring
vendors holded to purchased e*tra, than their wants and
approaching stuff, that resulted in higher commissions that
were temptations, where all of the arketing ethics overlaps,
with the natural ethics, in respect of desecrated problems
that linked with covering of products.
2n the increasing number of people they created their use
decisions on the source of ethical values, such as
environmentally friendly products, and production methods,
Ethical consumerism were growing fact that underpins the
ethical trade activities.
)n the market place the arketers should be alerted with
the ethical principles, and the acceptable behavior. +o bythat, the knowledge means marketers must be famoused, with
the viewpoints of those three groups of actors, the firs
will be the company then the industry, and then society.
%hese more or less had a diverse need and wants, and
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ethical clashes, that were e*pected to occur. %he Ethical
variations between those three needs that were mentioned,
was the company, the industry, and the society, so by those
the conflict may arised. 4nd then that ethical conflict
take place, when one0s private value clash with the
organization.
2n the other hand the other case of the clash of concernis
a possible outcome. %he most commonly clash arised with the
organizations occurs, when an organizer in the company
seeks private achieve, from fake advertising. %he vital
diseases were of one type product, which falls under thatcategory of ethical clash i.e. )n their abandon to create a
ma*imum profit, and a marketer influence those, who may be
vanished from not curable disease, and should to buy a
product, that cannot a heal, but a serious one may decided
to buy an attempt to place aside that dying family member
despair.
Ethical issues were in front of the marketing
professional0s that were in this time falls under one of
three categories. %hose +tandards for the ethical
marketing, the guidelines in the effort of the business,
were too ended with the right thing. +o they were indulging
in ethical marketing. 4s for the ethical marketing this
should be the reminder for all marketing decisions, and
hard work, that were important for gathering and came upwith the desires of the customers, suppliers and business
partners. +o the Ethical behavior pushed up all throughout
the company cultured, and in the course of company
practices. Ethics are our belief about what is right and
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wrong. 4lthough these beliefs may vary from one individual
to another or one company, to another ethics and business
responsibility.
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CHAPTER NO. 3
-ETHOD
!am(le
%he sample size selection was random with an aim to achieve
the most satisfactory results. %he human characteristics
were evenly balanced to reflect the fair result produced by
the study. %he design of the questionnaire allowed the
respondents, to participate in the research process easily.
%he sample population for this study was the consumer0s
organizations and the promoters. %he sample size for the
study was -((. %he questionnaire was submitted directly to
employees and customers of different companies in
)slamabad.
In"trument and -ea"ure"
/rimary research and secondary research was the two key
research sources for this research. +econdary research was
comprised of already published research papers, books and
magazine articles. %he questionnaire was adopted from an
already published research to make it convenient and
reliable !flipo, "##C$ ethics and marketing academics
e*press stiff critics$. 4 history of facilitated
communication7 +cience, pseudoscience, and ant science$.
%he questionnaire was related from the literature7 ethics
in the marketing. %he instrument that was used by this
questionnaire is a five6point Aikert scale. )t was
distributed among the consumers and different organizations
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involved in promotional activities. /eople provided and
e*pressed their perceptions on a wide range of statements
by means of a five6point Aikert scale. %heir responses
ranged from strongly agree to strongly disagree. %he
questionnaire will be divided into two parts. %he first
part asked participants that are about the ethics in the
product consumption. %he second part of the questionnaire
is related to the issues of ethics. )t asked customers
about the importance of ethics in the marketing and
promotion of different products.
Procedure
Fpon acquisition of data from the various organizations,
the analysis was carried out in the statistical package for
social sciences program !+/++$. %he feedback of the
respondents was quantitatively analyzed by assigning the
numerical values and these were specifically added to the
statistical tool for management +ciences +oftware !+/++$.
%his software helped to analyze different statistical
inferences and analysis. %his study was taken into account
the hypothesis testing and other statistical tools related
to research. ased upon the discussion of these statistics
a conclusion was drawn and a recommendation was proposed.
=egression was used to analyze the variables and their
impact on each other.
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CHAPTER NO.
RE!U)T AND DI!CU!!ION
De"cri(ti'e "tati"tic"
ean+td.
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?orrelations
?ustomerG4warenessGreagrding
2rgG=es /roGactivi
/earso
n?orrelation
?ustomerG4warenessG
reagrding
-.### #.(#( #.CH-
2rgG=es #.(#( -.### #.(H/roGactivi #.CH- #.(H -.###
+ig.!-6tailed$
?ustomerG4warenessGreagrding
. #.### #.###
2rgG=es #.### . #.###/roGactivi #.### #.### .
D ?ustomerG4warenessGreagrding
-(( -(( -((
2rgG=es -(( -(( -((
/roGactivi -(( -(( -((
%he co6efficient of correlation between the dependent and
the independent variable shows the following trends.
-. %here is a positive relation between the customer
awareness regarding their ethical rights and
organization responsibility towards their customers,
the e*act value i.e. !.(#($ shows a weak but positive
relationship.
". /ositive relationship between customer awareness
towards their ethical rights and promotional
activities and the e*act value that is !.CH-$ shows
weak but positive relationship.
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Model Summary(b)
Model R R Square
Adjusted R
Square Std. Error of the Estimate
1 .505(a) 0.255 0.251 0.3484
a. !redi"tors# ($o%sta%t)& 'rRes*o%si+ilit,b. ariable7 customer awareness regarding their
ethical rights.
%he standard error of estimate regression line active by
drawing dependent and independent variables is #.CH.
:hich shows less scattering of the data points around the
regression line3 +o the data is not disperse as the value is
closer to zero = square is coefficient of determination. %he
value of r square is ."(- which shows that the regression
line is not a perfect estimate of the variable.
ostly I=0 square lies between #J- and actually it measures
only the strength of the linear relation between variable.
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ANO+A/b0
odel+um of+quares df
ean+quare ' +ig.
- =egression @.CB" - @.CB" (".H;C .###!a$
=esidual -B.@#B -(C #.-""%otal "H.# -(H
a. /redictors7 !?onstant$, 2rgG=esponisibilty.b. ariable7 customer awareness regarding theirethical rights
%he critical value alpha is generally set at #.( the value
coming under sig column , it indicates .### which is less
then the critical value. :hich implies that the effects are
found to be significant .this simply implies that themean .differences more then would be e*pected by chance.
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Coefficient(a)
Model
-%sta%dardied$oeffi"ie%ts
Sta%dardied$oeffi"ie%ts
/ Si.
$orrelatio%s
Std.Error eta !art
Std.Error
1 ($o%sta%t)1.508 0.13 11.10 0.000
'rRes 0.3 0.051 0.505 .244 0.000 0.505 0.505 0.505
)t determines which of the values of independent variables
are most important for determining dependent variable are
most important for determining dependent variable as per
the results the standard cooefient !beta$come out to be
!.(#$.
:hich shows the moderate positive relationship between
dependent and independent variables.
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Reidual Statitic(a)
Mi%imum Maimum Mea%Std.
eiatio% 6
!redi"ted 7alue 1.38 3.104 2.410 0.2035 155
Residual 0.3888 1.0334 0.00000 0.341 155
Std. !redi"ted 7alue 2.14 3.12 0.000 1.000 155
Std. Residual 2.2 2.5 0.000 0. 155
a. e*e%de%t 7aria+le# $ustomerA9are%essreardi%
%his is the observable estimate of the statistical
error. %he table shows the residual statisticregarding the predicted value, standard predicted
value and the standard residual value. %here is no
residual standard observed in mean.
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C#art"
I2URE .1
%he 'igure H.- reveals the standard deviation of the
>ariables that are 2rganizational responsibilities towards
their customers, /romotional activities, and ?ustomer
4wareness regarding their Ethical rights which is #.;,
and combined mean of all variables, that is ".B@. )f we
measure up to " sigma ,it will cover (L of the responses
and if measured up to C, standard deviation from combined
mean of all variables, more than L of the responses are
covered. )t further reveals that most of the respondents up
to (L were agreed that the organizations are responsible
and the promotional activities enable and aware the
consumer regarding their ethical rights in consumption and
purchase of the products being advertise and offer for sale.
I2URE .*
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%he 'igure H." reveals that this is the commulative
probabilty graph,most of the respondants are lies near to
the residual line which proves that the hypothesis i.e
dependent variable,organization responsibilty towards their
customers, has a significant impact on independent variablethatisconsumerawearness.
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FIGURE 4.3
The figure 4.3 reveals that are 2rganizational responsibilities
towards their customers, /romotional activities, and?ustomer 4wareness regarding their Ethical rights ,the data
lies between 6",and M" ,so the standard deviation is
acceptable and the confredence interval, %hat is more than
the (L and more than the (L of respondents are agree. so
the 5- and 5" both are acceptable.
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CHAPTER NO. 3
CONC)U!ION AND RECO--ENDATION!
CONC)U!ION
%his research has successfully led towards comprehensive
analysis of the role of organization in creation of
consumer0s awareness regarding their ethical rights in
promotional activities.
a&ority of customers agreed to the point that they areaware of their ethical rights in terms during the marketing
campaigns. 2n the other hand organizations are also
responsible towards customer rights and treat the customers
with ethical responsibility.
)t is also noted that the /romotional 4ctivities in
/akistan are ethically correct in )slamabad reigon and thecustomers are made aware of the ethical issues regarding
advertising and promotional activities.
%he variable ?ustomer 4wareness of their Ethical =ights
is directly related with the /romotional 4ctivities in
/akistan. %his deduction shows that the /romotional
4ctivities in /akistan have a direct impact on ?ustomer
4wareness regarding their Ethical =ights. )f the
/romotional 4ctivities depict Ethical 4wareness, the
customers are going to be directly affected by the result.
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%he 2rganization0s =esponsibility towards ?ustomers show
that the /romotional 4ctivities in /akistan are
representing =esponsible 2rganizations which are keen to
depict that their customers are important to them and they
are ethically bound to be giving them the correct inputs.
)t is also realized that if 2rganizations in )slamabad are
more responsible towards their customers then the customers
in return become more aware of the ethical issues related
to a certain product on which the promotional ativity is
based upon.
%he organizations which are responsible towards their
customers have a greater understanding of the Ethical
Aimits of the customers. %his is very important in said
scenario as the customer is very sensitive to various
ethnic, demographic and sectarian issues and might reactvery abruptly towards a particular input shown in the
advertisement and promotional campaign.
+o from all the above discussion it is now revealed that
customers are well aware of their ethical rights and
organizations on the other hand are very responsible in
treating customers ethically, and playing their role increation of consumer awareness regarding their ethical
rights.
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RE)IABI)IT4
NNNNNN ethod - !space saver$ will be used for this analysis NNNNNNG
= E A ) 4 ) A ) % O 4 D 4 A O + ) + 6 + ? 4 A E !4 A / 5 4$
=eliability ?oefficients
D of ?ases P -((.# D of )tems P "-
4lpha P .BC(#
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/atrick E. urphy /rofessor. !"##"$.arketing Ethics,at the
illennium, !>olume C#, Dumber ($.
+ally ?ahill ,!"##($. =elevance of +ervice6 Aearning in
?ollege courses,!volume $.
%homas ,olume "#$.
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QUESTIONNAIRE
R!le !f !rga"i#ati!" i" $reati!" !f $!"su%er&s a'are"ess regar(i"g their ethi$al rights
i" )r!%!ti!"al a$tivities*
The stu(+ is ,ei"g $!"(u$te( ,+ -alee%a a#ir // Ira U"iversit+ Isla%a,a(
a%)us. The resear$h is ,ei"g $!"(u$te( !" The I%)a$t !f !, I"se$urit+ reuire a high
)arti$i)ati!" rate i" !r(er f!r the results t! ,e statisti$all+ %ea"i"gful. The uesti!""aireis sh!rt a"( 'ill reuire less tha" te" %i"utes !f +!ur ti%e. I 'ish t! assure +!u that a"+
res)!"se +!u %ae 'ill ,e stri$tl+ $!"fi(e"tial. If +!u have a"+ uer+ +!u $a" $!"ta$t at
E%ail%!hi,gulh!t%ail.$!% !r $ell 923335117363
lease Ti$ : ; +!ur res)!"ses usi"g the f!ll!'i"g s$ale
1. isagree
-. Qender ale ! $ 'emale !$
". 2rganization DameC. 4ge
-. +ome advertisements are even more en&oyable thatother media contents.
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H. ost of the time advertising contains funnycharacters and is en&oyable.
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