Ethics in Marketing

Here is a scenario for you to review….and answer if ethics have been compromised or not.
Submission: (max limit is 1 Page only) word document; Double Spaced; spell check;
Participation grade: 10 pts

You are the brand manager for Big Canyon’s potato chips.
Given significant increases in the cost of potatoes and vegetable oil, there has been a 25% increase in the cost of producing a bag of chips. Due to fierce competition in the snack food category, particularly in chips, you do not want to raise the price of your chips. You are considering reducing the size of the package (quantity of chips within each bag). This will allow you to retain your profit margin without having to increase the price. You expect that most consumers will not notice that the bag size has decreased.

Is there an ethical issue in this situation? Explain

(Hint: see Exhibit 1-7, AMA Ethical values on page 26 of the Textbook to answer the above. Can you point out 2 relevant AMA value(s) that might have been violated in the above situation?)

Here is the link for you read and get familliarized about the Statement of Ethics at The American Marketing Association. Read through the the Ethical Norms and Ethical values in Marketing.

Codes of Conduct | AMA Statement of Ethics

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