Tuesday, February 17, 2009

Let's Talk Ethics at 11am!

ETHICAL DILEMMA
“The city’s best hamburger” is the slogan for “Billy’s Burgers”, a local burger joint. How can Billy’s Burgers make this claim? Billy’s Burgers states that they sell a higher volume of burgers per day then their competitors, and used the number of customers who placed orders to substantiate the claim. The competition feels the claim is not justified as Billy’s Burgers is located in the center of town, near a high traffic area. For the competition, it’s simply the factor of location that provides Billy’s Burgers with more customer volume. It has nothing to do with the quality or taste of the hamburger.

Questions

Is Billy’s Burgers substantiation for the slogan “The city’s best hamburger” justified?

81 comments:

  1. Sure, its all a matter of opinion all places could ask their regulars, "who's the best?" and they would say the restaurant that they frequent.
    Anyone can say this about their restaurant it will always be up to perspective and perspectives will always differ no matter who makes this claim.

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  2. Correne - Answer the question in terms of the ethical concepts we've discussed in class. From an ethical/legal standpoint, is Billy's substantiation enough?

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  3. I would say it is not justified. I believe the slogan "Best Selling Burger in the city" would have been more suffice because of their high income and burger selling rate. they should do a taste test like any other edible product out there to actually have that claim.

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  4. Is Billy’s Burgers being truthful in their advertising slogan?

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  5. Yes I believe it is ethical because the matter is up to perspective. Perspective will inevitably differ in all cases. No legal action should play a part in someone thinking they have the best burgers because all Berger places think that about their own establishment.

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  6. Billy is bending the truth. selling a high volume does not mean they have the best burger in town. the best burger for the price or location maybe, but when it boils down to taste comparison is where it will truly be backed up in their assumption.

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  7. Yes it is truthful as it possibly can be. Different people will always think one place is the best in the city there is no way to solidly substantiate this claim.

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  8. Keep this Ethical Dilemma in mind this week as we discuss Truth in Advertising.

    I have a CHALLENGE for you today. Let’s try to avoid the “I think” or “My opinion is”. Try to frame your answers based on what you’ve read in the textbook and in our class discussion with facts and evidence supporting your ethical stance.

    Please take notes throughout our discussion today.

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  9. Based on our discussion last week, we can all agree that advertising seeks to persuade primarily by an appeal to sentiment rather than intellect, i.e. associating ads with feelings of humor, freedom, romance, etc. We know that this type of advertising (appealing to an image or lifestyle) works.

    In addition to using persuasion (as we discussed last week), advertisers will often use 1 of 2 techniques to persuade consumers:

    1. Fictional and metaphorical, in which ads are not intended to be true representations of reality. For example, a chocolate chip cookie that speaks.

    2.“Real life” advertising, such as endorsements, testimonials, straightforward product descriptions.

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  10. Both of these 2 techniques can be ethical and legal.

    So the topic today is deciphering the truth in advertising and determining when the line is crossed between truthful (ethical) and untruthful (unethical).

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  11. i think he's taking his high selling volume out of context in his stance of being the best. i am pretty sure you can go to court about that claim of being the best and without it being backed up by some logical reason besides sells.

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  12. When putting together a creative strategy, advertisers ask the question: appeal to consumers’ heart (i.e. image, lifestyle) or head (i.e. product information)?

    Each appeal comes with a claim about the product/service, which are either subjective or objective.

    What is a subjective claim?

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  13. The image, lifestyle is subjective to opinion, experience and perspective

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  14. subjective is based on opinionated response.

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  15. Exactly. A subjective claim is particular to a given person. It's personal.

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  16. On the flipside, what is an objective claim?

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  17. Oh read it wrong, yes subjective can waver or vary according to influential factors

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  18. Objective is an outside standpoint that is not subjective to influential factors

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  19. object is more of the "outside" source. facts, physical interpretations, and overall observations.

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  20. Can you provide a little more detail, Correne?

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  21. Facts, figures, statistics information backed up bu facts not emotions, feelings or opinions

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  22. Exactly. Objective claims are based on facts. They are also unbiased. There are no personal opinions involved.

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  23. Let’s examine the differences between subjective and objective claims.

    Can you give me an example of an objective claim in advertising?

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  24. statistics show that 4 out of 5 doctors approve colgate tooth paste as an affective whitening toothpaste.

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  25. Pepsi it preferred by consumers in a taste test two to one.

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  26. You are both on track.

    Objective claims require substantiation (proof) in order to be accepted as legal and ethical.

    -

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  27. Can you give me an example of a subjective claim in advertising?

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  28. Clairol "because your worth it"
    Allstate"Are you in good hands?"

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  29. common folk testimonials. AcneFree is "better" than Proactive.

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  30. Subjective claims will use image and attitude in the communications. For example, Nike’s “Just do it” appeals to the emotional connection with a sport rather than the need for the best footwear.

    The need for proof or support of the claim becomes less critical for the consumer due to the emotional appeal of the communications.

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  31. So quickly back to Billy's Burgers claim of "The best hamburger in the city". Was this an objective or subjective claim?

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  32. well its based off of opinions and "feelings" or the consumer. its what they think internally. They used both products and preferred one over the other because of their personal experience. also, AcneFree costs less and you can get it at Walgreens WalMart etc. its on their product box in quotations saying "better than proactive" so its based off of a testimonial opinion

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  33. It was entirely subjective. No facts, proof, or stats just opinion.

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  34. sadly, I will have to say this is an objective claim blown out of proportion. they did have more selling burgers and customers because of their location, but I still see it as stretching the truth in their claims to being the best.

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  35. Good answer Frankie, I dont agree but well backed opnion

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  36. While Billy's Burgers was a fictional example, their claim was subjective in nature. More proof would be needed to make their claim.

    Now that we’ve determined that there are two types of claims made in advertising: one based on facts and the other based on emotion, let’s look at the guidelines for measuring truth in advertising.

    Who sets the guidelines for measuring truth in advertising?

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  37. they do have "claims" because of their customer per day ratings versus their other competitors. thanks correne. much appreciated ^_^.

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  38. Legislative advertising regulatory agencies

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  39. Please be more specific, Correne. Think of who we've discussed quite a bit in class.

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  40. the government that has regulation control

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  41. on a side note, Billy Burgers could say "best burgers on the block" would be truthful if they are the only ones in their busy location.

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  42. Exactly. Legislative groups such as AAF and AMA.

    These regulatory boards have developed sets of codes and practices to make advertisers comply with a set of standards. These standards, as we’ve discussed, are designed to protect consumers from misleading claims, exaggerations or puffery.

    What is the policy of AAF and AMA regarding truth in advertising?

    (Please refer to the handout you were given a few weeks back in class with the policy standards of AAF and AMA.)

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  43. Responsibility, accountability, Fair competition, protection and promotion

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  44. is that the one about responsibility to consumers, decentcy, honesty, and truthfulness etc? there was 5 total

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  45. Advertisers must be truthful by specifically being responsible for out put and accountable for consequences of lying.

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  46. As part of your homework, please familiarize yourselves with the AAF and AMA principles. You have those handouts.

    However... The AAF and AMA stance on truth in advertising:

    AAF – Advertising shall tell the truth and shall reveal significant facts, the omission of which would mislead the public.

    AMA – Do no harm (consciously avoiding harmful actions or omissions by embodying high ethical standards and adhering to all applicable laws and regulations).

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  47. These are the guidelines that we, as advertisers, must comply with when it comes to honesty in our advertising.

    As we’ve discussed previously, who is the primary regulator of deceptive advertising and provides advertising guidelines in U.S.?

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  48. Correct Correne - the FTC.

    In terms of subjective ads versus objective ads, which is the bigger concern to the FTC?

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  49. The FTC is more concerned with objective ads since these claims deal with facts, evidence and must be substantiated (i.e. proved).

    According to the FTC, advertising must be truthful and non-deceptive. Ads must have evidence to back up their claims and cannot be unfair to consumers.

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  50. subjective because it is totally based off of opinions and can be flexible in how a product or service is promoted because of how it is backed up of who said what. objective is facts that can be supported solidly by itself without any other interferences to back it up in further

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  51. Based on what you’ve read in the textbook and class discussions thus far, what makes an ad deceptive?

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  52. Frankie - objective claims are more of a concern to legislative bodies as those claims need to be proven and justified.

    Subjective claims, as we talked about, use the elements of image and lifestyle to sell their product.

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  53. Inaccurate facts, inaccurate representation of product service or promotion.

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  54. on a side note. i thought the word concern meant it was directed towards what wouldn't be approved vs what is approved like objective ideas.

    a deceptive ad is promising results that maybe be more false than true. for example, the weight loss pill. lose 10 lbs in one week.

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  55. Exactly. And as we continue this semester, we will surely discover other ways ads are deceptive.

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  56. In class on Thursday, we will read an excerpt from the FTC’s Website regarding its advertising policies.

    However, here is a preview…

    According to the FTC’s Deception Policy Statement, an ad is deceptive if it contains a statement or omits information that is likely to mislead consumers acting reasonably under the circumstances and is material that is important to the consumer’s decision to buy or use the product.

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  57. Applying the concepts and terms we’ve discussed in class, can someone break this statement (FTC Deception Policy Statement) down in terms of what this means for us, advertisers?

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  58. It means that we can not alter or leave out important information in our ads especially information that will effect the consumer's buying decision. We must be honest in our ad content and not intend to mislead the consumer in order to sell a product or service.

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  59. it could possibly be broken down and have loopholes created. kind of like subjective vs objective. objective would be accepted as facts because of how it is backed up vs subjected is based on human emotions and thoughts, however, it still can be used in the right context like testimonials.

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  60. Good analysis, Correne.

    As we just learned, the FTC also regulates for unfair advertising. you're probably asking: What makes an ad unfair?

    According to FTC’s Unfairness Policy Statement, an ad is unfair if it causes or is likely to cause substantial consumer injury which a consumer could not reasonably avoid, and it is not outweighed by the benefit to consumers.

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  61. overall there is a standard of ethics in the FTC that cannot be changed or avoided.

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  62. Can someone put into layman speak what this statement means for us, advertisers? Use the concepts and terms we’ve talked about in class lectures.

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  63. How can an ad likely to cause substantial consumer injury??

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  64. when it comes to any form of advertising, we as advertiser must know if what we are trying to sell or promote has a primary foundation of truth to back up what we are trying to get recognition. We have to ask ourselves if a consumer or company approached us with an ad we made and asked us what backs it up or why it is designed the way it is, we have to answer truthfully and provide any information asked under legal availability of course.

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  65. Think about the FTC's Unfairness Policy Statement between now and Thursday. Do a little research and let me know what you think this policy statement is all about.

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  66. I can only think in terms of medication. Some how I dont think that covers it.

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  67. ETHICS HOMEWORK REMINDER
    -Chapter 4 for Thursday, Feb. 19th

    -Complete case study 4B and answer question for Thursday, Feb. 19th

    -Article Journaling answers for Wednesday, Feb. 18th at 12pm

    -“Closed Circuit Programming” case analysis assignment due Thursday, Feb. 26th
    o NOTE: Avoid “I” or “Me” opinions
    o Incorporate evidence and facts from the textbook and other supporting material
    o Use terminology and concepts discussed in class lectures

    -BRING YOUR TEXTBOOKS TO CLASS!!!

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  68. an ad could affect a persons moral values or personal beliefs like religion, cursing, provocative depiction of images, suggestive images etc. it can cause mental/emotional disturbance, but physically... not so much

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  69. Victoria can you give an example why consumers may have the threat of injury with an ad. I really cant think of any

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  70. Good discussion. Any questions/concerns?

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  71. I'm going to give you the task by Thursday's class to visit the FTC's website. Or, use your knowledge of secondary research to learn more about the Unfairness Policy.

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  72. I thought you might know, we have alot due thur

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  73. We'll discuss it on Thursday. It'll be a great reason to come to class! :)

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