Marketing Research VII

Journal of Management Research Vol. 10, No. 3, December 2010, pp. 135-150

Ethical Issues Encountered by Marketing Researchers in India Meenakshi Handa and Anupma Vohra

Abstract

With the growth of the marketing research function, the significance of ethical issues in the field is also increasing. The validity of research findings and their utilization, respondent willingness to cooperate, the rights of the various stakeholders in the research process as well as the very credibility of the profession are impacted by research ethics. This paper provides the findings of an empirical investigation into the frequency with which major ethical issues are encountered by marketing researchers-in marketing departments and research agencies in India. The study finds that though the overall reported frequency of encountering unethical practices is on the lower side, there is nevertheless a general acknowledgment of the existence of these practices and that opinions on what constitutes unethical practice is divided with regard to certain issues.

Keywords: Ethics, marketing research, respondent abuse, research integrity

Meenakshi Handa University School of Management Studies Guru Gobind Singh Indraprastha University Kashmere Gate, Delhi 110006

Anupma Vohra Faculty of Management Studies University of Delhi, Delhi 110007

INTRODUCTION

Ethics may be viewed as the study of human conduct with an emphasis on determination of right and wrong (Fraedrich and Ferrell, 1992). According to Hunt, Chocko and Wilcox (1984) ethical problems are essentially relationship problems since ethical problems occur only when an individual interacts with other people and perceives that his/her duties and responsibilities towards one group are inconsistent with those towards some other group including one’s own self.

A number of studies on business ethics (Baumhart, 1961; Brenner and Molander, 1977; Murphy and Laczniak, 1981; Vitell and Muncy, 1992) have found that some of the most important ethical problems identified in business are related to

marketing activities. According to Murphy and Laczniak (1981) “the function within business firms most often charged with ethical abuse is marketing” and the most extensive concern about ethical problems within the field of marketing has been in the area of marketing research. Ethical concerns are particularly significant to the field of marketing research as not only is the effectiveness of marketing research activities, but the very credibility of the field depends on public readiness to cooperate. Ethical issues related to marketing research have been the subject of several studies and debates (Bogart, 1962: Blakenship, 1964; Crawford 1970; Smith, 1974; Tybout and Zaltman, 1974; Bezilla, Joel, Haynes and Elliot 1976; Day 1975; Coney and Murphy, 1976; Coe and Coe, 1976; Schneider, 1977; Frey and Kinnear 1979; Hunt et al 1984; Ferrell and Skinner, 1988; Skinner, Ferrell and Dubinsky, 1988; McDaniel, Verille and Madden, 1985; Akaah and Riordan 1989; Akaah, 1990; Murphy and Laczniak 1992; Ferrell, Hartline and McDaniel 1998; Malhotra and Miller 1998).

The marketing research industry in India has witnessed substantial growth in recent years. Liberalization of the Indian economy since the

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early nineties has led to unleashing of competitive forces in many industries. Understanding consumer needs and monitoring customer attitudes through marketing research is being viewed by an increasing number of business organizations as the key to success. Not only multinationals such as Hindustan Unilevers, Colgate-Palmolive, Proctor and Gamble, Whirlpool, General Motors and Frito Lays, with their tradition of formal marketing research but also local firms such as Dabur India Ltd., Marico and Ranbaxy Consumer Healthcare are enhancing their market research budgets. As the marketing research industry in the country grows both in terms of size and number of players there is going to be an increase in calls for paying more attention to the rights and responsibilities of all stakeholders in the research process. Although a vital concern, ethical issues in marketing research in the Indian context have not been the focus of any studies. The importance of giving due regard to ethical issues cannot be overemphasized. Unethical practices affect the quality of decision-making since they can undermine research results (Ferrell and Skinner 1988). The extent of trust between users and suppliers can affect the utilization of research results (Moorman, Zaltman and Deshpande, 1992). Also, negative perception towards the profession could lead to legislation as has been the case in countries such as the United States where the Federal Trade Commission has regulated against the use of research as a sales ploy.

This paper in the first part identifies the major stakeholders in the research process, discusses how they are likely to be affected by various ethical challenges in the research process and reviews the findings of the research done in this area. In the second part, the paper presents the findings of a study aimed at identifying the major ethical issues faced by marketing researchers in India and the frequency with which these issues are encountered.

STAKEHOLDERS IN MARKETING RESEARCH

An important focus in the area of marketing research ethics has been on the rights of the parties involved in the research process (Murphy and

Laczniak, 1981). According to Malhotra and Miller (1998), the research process has implications for five different parties: The public, the respondents, the clients, the researchers and the research profession itself.

With regard to the rights of the respondents, Murphy and Laczniak (1992) point to issues such as deceptive practices which may include false promises of anonymity and confidentiality, incorrect sponsor identification, the use of research as a sales ploy and misrepresentation of research procedures. (questionnaire length, follow-up interview). Also included are invasion of respondent privacy and abuse of respondents such as contacting them at an inconvenient time, overly long interviews and insensitive questions.

The rights of clients relate to protection from recommendations for unnecessary research, misrepresentation of limitations of research design, use of inappropriate analytic techniques, misleading presentation of data, use of overly technical language and protection from unqualified researchers. Other ethical issues in the researcher- client relationship are concerned with overbilling, maintaining client confidentiality and avoiding conflict of interest with other clients.

A researcher also needs protection in certain matters. It would be unfair for clients to solicit proposals for research when the preferred supplier is already decided or to pass on research ideas and techniques presented by one supplier to another or to use them in-house. Disclosures by a client of a research firm’s proprietary techniques, misrepresentation of research findings, sponsoring research to obtain predetermined results have been identified as ethical issues in the researcher- client relationship

According to Malhotra and Miller (1998) concerns regarding responsibility towards the public at large relate to (a) biased research such as using research designs or methods that would result in misleading findings (b) incomplete reporting and misreporting. A study by Akaah and Riordan (1989) amongst US marketing executives found that a third of the executives were of the opinion that these practices

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were common. Unprofessional or unethical marketing research practices are likely to negatively impact the public’s willingness to cooperate in surveys (Crawford 1970; Day, 1975; Bezilla et al., 1976; Frey and Kinnear, 1979; Tybout and Zaltman, 1974).

If marketing research is to be recognized as a profession then it should be the endeavor to ensure the right methods and the highest ethical standards. The issue of certification of the profession is a relevant one in this regard.

LITERATURE REVIEW

The extant literature on the subject of ethical issues in marketing research mainly focuses on two areas: (a) identifying the major ethical concerns in marketing research and attitudes towards them (b) studying the antecedents of unethical/ethical practices in marketing research.

Identification of and Attitudes towards Ethical Issues

Bogart (1962) addressed the dilemma faced by the marketing researcher because of his dual orientation as a professional and enumerated four kinds of ethical problems in marketing research (i) researcher honesty in doing what he purports to do (ii) distortion in selection of research techniques in order to produce desired findings (iii) judgment in undertaking research projects which the researcher knows will fail to yield the information his client or employer wants, and (iv) respondent concerns related to the purpose and sponsorship of a study. Similarly, Blankenship (1964) identified ethical issues as being involved in (i) the conflict of interest in ownership and management of research firms (for e.g. the research firm being a subsidiary of an advertising agency (ii) financial aspects of contract research (for e.g. pricing, entertaining etc.) and (iii) implementation of research (for e.g. protection of confidential information).

Crawford (1970) undertook a study wherein a series of “action” situations from the field of marketing research was posed to senior marketing

and research personnel. Respondents indicated disapproval of actions such as use of ultraviolet ink, hidden tape-recorders and one-way mirrors, exchange of price-data, ignoring of executive distortion of research findings, conflicts of interests involving personal gain, and personnel situations involving racial and religious discrimination. Other ethical problems studied included performing research for obtaining predetermined conclusions, deliberate use of technical jargon, selling in the guise of marketing research, and failure to use research techniques claimed to be used. Akaah and Riordan (1989) replicated Crawford’s (1970) study and found several changes in ethical judgments. In addition, three organizational factors-extent of ethical problems within the organization, top management actions on ethics, and organizational role (researchers vs. executives)-were found to underlie differences in ethical judgments.

Smith (1974) used the term ‘pseudo research’ to refer to marketing research performed to satisfy needs of organization members other than information needs. The motives behind pseudo research may be (a) organizational politics: to meet the power needs of executives, or to justify decisions already made, or to serve as a scapegoat (b) promotion of service: to impress clients or prospects that the sponsor is sophisticated, modern or sincere (c) personal satisfaction: to enhance self- esteem, assuage anxieties and prove as a means for managers to exercise their skills.

Day (1975) identified three threats to marketing research that could possibly be controlled: excessive interviewing, lack of consideration and abuse of respondents and the use of marketing research as a sales ploy. McDaniel et al. (1985) studied the prevalence of the problems identified by Day (1975) by conducting five surveys at two- year intervals. The study concluded that all the three areas investigated warranted attention from marketing researchers. However, the use of marketing research as a sales ploy was the greatest threat as it was most likely to erode the trust of respondents.

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An empirical study by Hunt et al. (1984) found that research integrity, which referred to all dishonest research practices, was the ethical issue most frequently identified by both in-house and agency researchers. The other more frequently identified issues were those of treating outside clients and respondents fairly, research confidentiality, and social issues pertaining to elements of the marketing mix, personnel issues. The study found that though marketing researchers perceived many opportunities for unethical behavior, they perceived a very low frequency of actual unethical behavior and that the presence of a professional code of conduct did not have an impact on respondent perceptions. Marketing researchers did not believe that unethical behavior in general led to success in marketing research.

Bowers (1999) point out technological developments, in particular, the internet, advances in telecommunication and the merging of databases information as providing new opportunities for research but is also raising several ethical issues related to individual privacy and data confidentiality.

A number of cross-national studies have been undertaken in the area of marketing research ethics, though they have been limited to developed nations. Akaah (1990) did not find significant differences in research ethics attitudes among marketing professionals in Australia, Canada, Great Britian, and the United States using Crawford’s (1970) items. Giacobbe and Segal (2000) too find that US and Canadian marketing researchers have similar perceptions of the relative importance of specific ethical norms.

Antecedents of Unethical/Ethical Conduct in Marketing Research

A study conducted by Ferrell and Skinner (1988) found the existence of an ethical code and higher levels of formalization to be related significantly to perceived ethical behavior in corporate research departments, research firms and data subcontractors. Centralization was related positively to ethical behavior in research firms only, and enforcement of ethical codes was related to

ethical behavior in research firms and amongst data subcontractors. Acceptance of authority and controls were not found to be related significantly to ethical behavior in any of the organizations.

Zay-Ferrell, Weaver and Ferrell (1979) found that differential association with peers and opportunity is a better predictor of ethical/unethical behavior amongst marketing managers primarily engaged in research than the respondent’s own ethical beliefs. Skinner et al. (1988) also propose that the behavior of referent others and opportunity to engage in unethical behaviors are better predictors of unethical behaviors in marketing research organizations than the individual’s own ethical belief system..

Ferrell et al. (1998) found that marketing research firms and data-subcontractors tend to possess and enforce internal codes of ethics, and were aware of and enforced external codes of ethics, to a much greater extent than corporate research departments. This was explained by the marketing research firms’ and data subcontractors’ desire to maintain control mechanisms that provide evidence of the quality of their service. Malhotra and Miller (1998) developed an integrated model for ethical decision- making in marketing research that incorporates various perspectives and stakeholders. The cognitive moral development (CMD) of the decision maker determines the manner in which an ethical issue will be treated. A set of alternative solutions to the problem is identified and evaluated by the decision-maker from the perspective of one or more of the ethical philosophies. The action or behavior actually undertaken and the outcome feed back into the management of the marketing research process.

Studying the influence of cultural dimensions on marketing research professionals’ reported ethical research behavior, Akaah (1993) found that marketing research professionals in organizations of bureaucratic-innovative-supportive culture reflect the highest reported research ethics behavior, followed by those in organizations of innovative-supportive and bureaucratic-only cultures.

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RESEARCH METHODOLOGY

This study attempts to measure the perceptions of marketing researchers in India regarding the frequency with which various situations with ethical dimensions are encountered in marketing research.

Data Collection Procedure and Sample

Primary data for the study was collected through two structured questionnaires which formed part of a larger study on the status of marketing research in India. Respondents for the first questionnaire were executives heading the marketing research function/ marketing executives handling the marketing research function in business organizations using formalized marketing research - that is, marketing research for which a specific budget was allocated. To identify business organizations using marketing research the membership list of the Market Research Society of India (MRSI) was used as a preliminary starting point. In order to include other marketing research

users a combination of judgmental and snowball sampling was used thereafter. Data was collected through personal interviews and e-mail. A total of 132 business organizations participated in the study.

The target respondents for the second questionnaire were heads/senior personnel in market research agencies. Here again, the membership list of the Market Research Society of India was used as an initial starting point. Thereafter, snowball sampling was used. Marketing research agencies with offices/branches located in the National Capital Territory of Delhi and in Mumbai were approached through personal visits, after prior telephonic appointments. In all, data was obtained from 35 research agencies. As per industry sources, these 35 agencies together represent more than 70 % of the outsourced marketing research in the country. Tables 1 to 3 present a profile of participating user organizations, research agencies and the respondents.

Table 1: Business Organizations using Formal Marketing Research: Description of Sample by Annual Sales Turnover and Industry Type (Figures in $ million)

Annual Sales Turnover*

Group A Group B Group C Group D Total Above $ 450 $ 225 to $ 450 $ 110 to $ 225 Below $ 110

No. % of Total No. % of Total No. % of Total No. % of Total No. % of Total Industry Sample Sample Sample Sample Sample

Consumer Non-Durables 5 3.8 5 3.8 15 11.4 18 13.6 43 32.6

Consumer Durables 10 7.6 8 6.1 9 6.8 8 6.1 35 26.5

Industrial Products 4 3.0 3 2.3 8 6.1 5 3.8 20 15.1

Services 6 4.6 4 3.0 10 7.6 14 10.6 34 25.8

Total 25 18.9 20 15.2 42 31.8 45 34.1 132 100.0

* Information on Annual Sales Turnover collected in ` and converted into US$

Table 2: Market Research Agencies: Description of Sample by Annual Turnover (Figures in $ million)

Classification by Size (Annual Turnover from MarketingResearch*) Number % of total sample

Group A Agencies: $ 2.25 million and Above 15 42.9

Group B Agencies: Below $ 2.25 million 20 57.1

Total 35 100.0

* Information on Annual Turnover from Marketing Research collected in ` and converted into US$

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Table 3: Work Experience Profile of Respondents

User Organizations MR Agencies

Years of Work Experience Number % of Sample Number % of Sample

> 10 Years 30 22.7 21 60

5-9 years 80 60.6 14 40

< 5 years 22 16.7 Nil Nil

Total 132 100.0 35 100

Development and Testing of Data Collection Instruments

Subsequent to a review of the extant literature preliminary interviews/discussions were conducted with heads of research units in marketing user organizations, and heads/senior persons from marketing research agencies. These persons had between eight to twenty years of experience in their field of work. A large pool of statements reflecting various situations with ethical dimensions relevant to marketing research was generated. From this pool, items were selected such that they each represented different aspects of the construct being studied and together represented the construct as comprehensively as possible. Respondents were required to indicate their perceptions regarding the frequency with which these situations were encountered in the conduct of marketing research on a five-point scale ranging from “Very Infrequently” to “Very Frequently”. The option of indicating if a respondent did not perceive a particular situation to be an ethical issue was also provided.

The questionnaires were presented to academic experts for evaluation and after revisions based on the feedback were pretested through personally administered pretests with the relevant respondent groups and necessary modifications were incorporated. The final versions of the questionnaires contained eighteen items.

STUDY FINDINGS

Perceptions of Marketing Research Managers

Tables 4 and 5 present the perceptions of

marketing research managers regarding the frequency with which situations involving ethical issues/ dilemmas were encountered in the conduct of marketing research in India.

Hiding the real identity of the sponsor from respondents ranked the highest in terms of frequency of encounter, with 52 percent of marketing research executives rating the issue as being frequently or very frequently encountered. However, 27 percent of the marketing research executives were of the opinion that this was not really an ethical issue and that hiding the identity of sponsors was required for the research to serve its purpose and that it really did not harm the average respondent’s interest if he/she was not informed about the identity of the sponsor.

Hiding the real purpose of the study ranked as the second issue in terms of frequency of encounter, with 35 percent of the respondents giving it a rating as being frequently or very frequently encountered in the conduct of marketing research. In the case of this issue, 34 percent of the marketing research managers participating in the study were of the opinion that this was not an ethical issue really as long as the respondents’ interests were not affected.

Interviewer dishonesty at the field level ranked as the third issue in terms of frequency of encounter, with 33 percent of the respondents giving it a rating as being frequently or very frequently encountered. Some of the respondents qualified their rating with the statement that although they may not have encountered many actual cases of interviewer cheating, they had to be constantly vigilant about this. Although the overall frequency

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may not be very high, the fact remains that data collection is the basic foundation on which the quality of research depends and doubts about interviewer integrity can cause the overall research findings and conclusions to be treated with skepticism.

Recommendations by agencies for use of

proprietary research models lacking proper validation/other inappropriate methods, and lack of proper implementation and validation of fieldwork were rated as the fourth and fifth most frequently encountered ethical issues in the conduct of marketing research. Both the issues have received a rating of frequent or very frequent from 11 percent of the respondents.

Contd. . .

Table 4: Ethical Issues Encountered in the Conduct of Marketing Research in India: Perceptions of Marketing Research Managers

Frequently or Very Neither Frequently Infrequently or Frequently Encountered nor Infrequently Very Infrequently

(% Respondents) Encountered Encountered Ethical Issue (% Respondents) (% Respondents)

(i) Hiding the real identity of 52.3 18.9 1.5 sponsors of a project from respondents.*

(ii) Hiding the real purpose of the project from respondents. ** 35.3 28.1 2.4

(iii) Interviewer dishonesty with regard to following conditions, specifications and instructions for field work. 32.6 56.0 11.4

(iv) Recommendations by agencies for use of proprietary research models lacking proper validation 10.6 56.8 32.6

(v) Lack of proper implementation and validation of fieldwork 10.6 53.0 36.4

(vi) Use of data from one project in a related project by agencies. 3.8 43.2 53.1

(vii) Recommendations to clients by agencies for unnecessary/overly expensive research 2.3 22.2 75.5

(viii) Pressure from management to modify/misrepresent research results to support a predetermined point of view 2.3 5.3 92.4

(ix) Use of marketing research as a sales ploy. 0.8 18.9 80.3

(x) Not being able to protect the anonymity of respondents when they have been led to believe that their anonymity will be ensured. 0.8 3.0 96.2

(xi) Violation of client confidentiality by research agencies. 0.0 14.4 85.6

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Frequently or Very Neither Frequently Infrequently or Frequently Encountered nor Infrequently Very Infrequently

(% Respondents) Encountered Encountered Ethical Issue (% Respondents) (% Respondents)

(xii) Use of gifts, bribes and entertainment by agencies in order to secure marketing research business 0.0 12.1 87.9

(xiii) Pressure from management to modify design/ methods for a research project in order to arrive at predetermined conclusions. 0.0 5.3 84.7

(xiv) Pressure from sales department to provide respondent details to be used as sales leads 0.0 4.5 95.5

(xv) Abuse of respondents (e.g.harassment for cooperation, overburdening ) 0.0 3.8 96.2

(xvi) Use of hidden tape recorders/cameras etc. without the knowledge of respondents 0.0 0.8 99.2

(xvii) Solicitation of research proposals by clients when agency is already predetermined / to obtain research ideas 0.0 0.0 100.0

(xviii) Use of respondent identification techniques although an anonymous survey is promised. 0.0 0.0 100.0

(xix) Others 11.4 18.9 9.8

* 27 percent of the respondents did not consider this to be an ethical issue.

** 34 % percent of the respondents did not consider this to be an ethical issue

n = 132

More than fifty percent of the respondents have rated both the issues as being encountered neither frequently nor infrequently. Also, they have received an overall mean rating of 2.77 and 2.74 respectively.

All the remaining issues presented to the respondents regarding ethical dilemmas received an overall rating of 2.18 or less with not more than 2 percent of the respondents rating the issue as being encountered frequently or very frequently. Thus issues like protection of respondent identity, abuse of respondents, use of marketing research as a sales ploy, unethical methods to secure marketing research business, pressures from management to modify research design or research results so as to

support a predetermined point of view were mainly perceived to be encountered infrequently or very infrequently.

The comparison of responses of marketing research managers classified according to industry type presented in Table 5 indicates no significant differences other than with regard to three areas. In the case of implementation of field work by agencies respondents from consumer product organizations perceived the problem as being encountered somewhat more frequently than those in the other two industries. With fewer number of buyers, managers in organizations manufacturing industrial products are likely to be obtaining a considerable amount of feedback and inputs for

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decision-making through direct customer contact. Webster (1978) noted that as compared to consumer products, industrial product transactions are characterized by “stronger buyer seller interdependence through limited sourcing and technical interrelationships”. Similarly, in the case of services, the different kinds of service encounters provide opportunities for data collection. On the other hand, the customers for consumer goods tend to be large in number and also widely dispersed geographically, often with several intermediaries between the firm and the end-consumer. There is thus greater dependence on independent field work for data collection. This may be the reason for executives in consumer product organizations to perceive this as a more severe problem.

The use of data from one project in a related project by agencies is perceived to be encountered more frequently by respondents in the service industry. However, the researchers in this study could not ascribe any specific reason for this. In the case of use of respondent identification techniques the overall rating given to the issue was 1.02 thereby indicating that overall the practice involved was seen as taking place very infrequently.

Ethical Issues in Marketing Research: Perceptions of Marketing Research Agency Personnel

Tables 6 and 7 present the perception of marketing research agency personnel regarding the frequency with which situations involving ethical issues are encountered in the conduct of marketing research.

Hiding the identity of sponsors received the highest rating with 46 percent of agency researchers giving it a rating of 4 or more. Six percent of the marketing research agency personnel were of the opinion that this was not an ethical issue and that hiding the identity of the sponsors was sometimes required for a study.

Hiding the real purpose of the research ranked second in terms of frequency of encounter, with 46 percent of the respondents giving it a rating of

4 or more. About 9 percent of the marketing research agency personnel did not consider ethics to be involved in the situation.

Interviewer dishonesty ranked third in terms of frequency, but only 14 percent of agency personnel gave it a rating of 4 or more and the overall rating was 2.69. The perceptions of marketing research managers and marketing research agency personnel seem to differ on this issue, with the former rating it as being more frequently encountered than the latter. It is possible that agency personnel were more cautious in responding about an important aspect of the research process, the quality of which they were responsible for maintaining. All other situations presented received a rating of 2.26 or less from agency personnel, indicating that according to the respondents these issues were encountered either infrequently or very infrequently in the conduct of marketing research.

There were significant differences between marketing research agency personnel and marketing research managers with regard to several other issues also. Recommendations by agencies for use of proprietary research models lacking proper validation, lack of proper implementation and validation of field work, recommendations to clients for unnecessary/overly expensive research, use of hidden tape recorders etc., and use of gifts etc. were issues which received a higher overall mean rating from marketing research managers. Issues such as pressure from clients/management to modify research design or research results and solicitation of research proposals, were rated by agency personnel as being encountered more frequently. It seems that each group is more cautious in rating aspects for which their own group members are responsible.

CONCLUSION

The study finds that overall marketing research personnel in India, as their counterparts in other countries, are aware of and acknowledge the existence of various ethical challenges in their profession. The overall reported frequency of encountering many of the unethical practices is,

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Table 5: Frequency of Encounter of Ethical Issues in the Conduct of Marketing Research-Perceptions of Marketing Research Managers across Industries–Descriptive Statistics and One-Way ANOVA

Industry Consumer Consumer Industrial Situation Total Sample Non-Durables Durables Products Services ANOVA

Mean Std. Dev. R Mean Std. Dev. Mean Std.Dev. Mean Std.Dev. Mean Std.Dev. FValue

(i) Hiding the real identity of sponsors 3.72 0.59 1 3.76 0.79 3.78 0.42 3.53 0.52 3.72 0.46 0.617 of a project from respondentsa

(ii) Hiding the real purpose of the project 3.52 0.60 2 3.59 0.50 3.67 0.61 3.39 0.61 3.36 0.68 1.743 from respondentsb

(iii) Interviewer dishonesty with regard to 3.23 0.68 3 3.26 0.73 3.31 0.72 2.95 0.69 3.29 0.52 1.465 following conditions, specifications and instructions for field work

(iv) Recommendations by agencies for 2.77 0.65 4 2.72 0.67 2.86 0.60 2.65 0.75 2.79 0.64 0.522 use of proprietary research models lacking proper validation/other inappropriate methods

(v) Use of data from one project in a 2.45 0.67 5 2.53 0.55 2.54 0.66 2.60 0.82 2.15 0.66 3.276* related project by agencies

(vi) Lack of proper implementation 2.20 0.63 6 2.67 0.65 2.36 0.73 2.10 0.51 2.01 0.56 6.255** and validation of fieldwork

(vii) Recommendations to clients by 2.18 0.62 7 2.14 0.71 2.23 0.49 2.20 0.77 2.18 0.52 0.139 agencies for unnecessary/overly expensive research

(viii) Violation of client confidentiality by 1.99 0.55 8 1.98 0.56 2.14 0.60 2.00 0.46 1.85 0.50 1.666 research agencies

(ix) Use of marketing research as a 1.92 0.71 9 2.05 0.79 1.80 0.83 1.75 0.44 1.97 0.58 1.233 sales ploy

(x) Use of gifts, bribes and entertainment 1.74 0.66 10 1.84 0.69 1.80 0.72 1.80 0.62 1.53 0.56 1.634 by agencies in order to secure marketing research business

(xi) Abuse of respondents (e.g. 1.49 0.57 11 1.63 0.62 1.49 0.51 1.40 0.68 1.38 0.49 1.408 harassment for cooperation, overburdening)

Contd. . .

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(xii) Pressure from management to modify/ 1.40 0.70 12 1.44 0.73 1.49 0.85 1.45 0.60 1.24 0.50 0.892 misrepresent research results to support a predetermined point of view

(xiii) Pressure from sales department to 1.28 0.54 13 1.35 0.61 1.31 0.63 1.20 0.41 1.21 0.41 0.627 provide respondent details to be used as sales leads

(xiv) Pressure from management to modify 1.28 0.56 13 1.33 0.61 1.26 0.56 1.15 0.37 1.32 0.59 0.542 design/methods for a research project in order to arrive at predetermined conclusions

(xv) Solicitation of research proposals by 1.27 0.45 15 1.26 0.44 1.20 0.41 1.40 0.50 1.29 0.46 0.893 clients when agency is already predetermine/to obtain research ideas

(xvi) Not being able to protect the anonymity 1.25 0.54 16 1.35 0.69 1.20 0.41 1.30 0.66 1.15 0.36 1.035 of respondents when they have been led to believe that their anonymity will be ensured

(xvii) Use of hidden tape recorders/cameras 1.15 0.38 17 1.19 0.45 1.20 0.41 1.10 0.31 1.09 0.29 0.739 etc. without the knowledge of respondents

(xviii) Use of respondent identification 1.02 0.15 18 1.00 0.00 1.00 0.00 1.00 0.00 1.09 0.29 3.065* techniques although an anonymous survey is promised

(xix) Others 1.24 1.59 – 1.14 1.63 1.00 1.48 1.50 1.64 1.47 1.66 –

n = 132

R = Rank a 27 % of the respondents did not consider this to be an ethical issue b 17 % of the respondents did not consider this to be an ethical issue

Responses on a scale from 1 to 5 with 1=Very Infrequently and 5=Very frequently

* Significant at 0.05 level

Industry Consumer Consumer Industrial Situation Total Sample Non-Durables Durables Products Services ANOVA

Mean Std. Dev. R Mean Std. Dev. Mean Std.Dev. Mean Std.Dev. Mean Std.Dev. FValue

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Table 6: Ethical Issues Encountered in the Conduct of Marketing Research-Perceptions of Marketing Research Agency Personnel

Issue Frequently or Very Neither Frequently Infrequently or Frequently Encountered or Infrequently Very Infrequently

% Respondents Encountered Encountered % Respondents % Respondents

(i) Hiding the real identity of sponsors 48.5 51.5 0.0 of a project from respondents*

(ii) Hiding the real purpose of the 50.0 46.9 3.1 project from respondents**

(iii) Interviewer dishonesty with regard 14.3 42.9 42.8 to following specifications and instructions for field work

(iv) Recommendations by agencies 8.6 11.4 80.0 for use of proprietary research models lacking proper validation

(v) Pressure from clients/management 5.8 17.1 77.1 to modify/ misrepresent research results to support a predetermined point of view

(vi) Lack of proper implementation 5.7 14.3 80.0 and validation of fieldwork by agencies

(vii) Pressure from management to modify 2.9 26.5 70.6 design/ methods for a research project in order to arrive at predetermined conclusions

(viii) Use of marketing research as 2.9 22.8 74.3 a sales ploy

(ix) Solicitation of research proposals 2.9 17.1 80.0 by clients when agency is already predetermined / to obtain research ideas

(x) Recommendations to clients by 0.0 20.0 80.0 agencies for unnecessary/overly expensive research

(xi) Violation of client confidentiality 0.0 11.4 88.6 by research agencies

(xii) Use of data from one project in a 0.0 5.7 94.3 related project by agencies

(xiii) Pressure from client/sales 0.0 2.9 97.1 department to provide respondent details to be used as sales leads

(xiv) Not being able to protect the 0.0 0.0 100.0 anonymity of respondents when they have been led to believe that their anonymity will be ensured

Contd. . .

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(xv) Use of hidden tape recorders/ 0.0 0.0 100.0 cameras etc. without the knowledge of respondents

(xiv) Use of respondent identification 0.0 0.0 100.0 techniques although an anonymous survey is promised

(xvii) Abuse of respondents (e.g. harass- 0.0 0.0 100.0 ment for participation, overburdening)

(xviii) Use of gifts, bribes and entertainment 0.0 0.0 100.0 by agencies in order to secure marketing research business

(xix) Others ( Delayed payments, 2.9 22.8 74.3 over-bargaining etc.)

* 6 % of respondents did not consider this to be an ethical issue

** 9 % of respondents did not consider this to be an ethical issue

n = 35

Issue Frequently or Very Neither Frequently Infrequently or Frequently Encountered or Infrequently Very Infrequently

% Respondents Encountered Encountered % Respondents % Respondents

Contd. . .

Table 7: Ethical Issues Encountered in the Conduct of Marketing Research-Perceptions of Marketing Research Agency Personnel – Descriptive Statistics and Comparison with Marketing Research Managers

Situation MR Agency Personnel Comparison with MR Mgrs.-t test

Mean Std. Dev. Rank t value Sig.

(i) Hiding the real identity of sponsors 3.52a 0.57 1 1.721 .088 of a project from respondents a

(ii) Hiding the real purpose of the 3.47b 0.57 2 .414 .679 project from respondents b

(iii) Interviewer dishonesty with regard 2.69 0.87 3 3.479 .001* to following specifications and instructions for field works

(iv) Recommendations by agencies for 2.26 0.66 4 4.090 .000* use of proprietary research models lacking proper validation

(v) Use of marketing research as 2.14 0.70 5 -1.684 .094 a sales ploy

(vi) Lack of proper implementation and 1.97 0.82 6 5.745 .000* validation of fieldwork by agencies

(vii) Pressure from clients/ management 1.94 0.87 7 -4.268 .000* to modify design/ methods for a research project in order to arrive at predetermined conclusions

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Situation MR Agency Personnel Comparison with MR Mgrs.-t test

Mean Std. Dev. Rank t value Sig.

(viii) Solicitation of research proposals 1.94 0.77 7 -4.964 .000* by clients when agency is already predetermined / to obtain research ideas

(ix) Pressure from clients/management 1.91 0.98 9 -3.527- .001* to modify/ misrepresent research results to support a predetermined point of view

(x) Recommendations to clients by 1.83 0.75 10 2.575 .013* agencies for unnecessary/overly expensive research

(xi) Violation of client confidentiality 1.63 0.70 11 2.891 .006* by research agencies

(xii) Use of gifts, bribes and entertain- 1.51 0.51 12 1.897 .060* ment by agencies in order to secure business

(xiii) Abuse of respondents (e.g. 1.49 0.51 13 .063 .950 harassment for participation, overburdening)

(xiv) Pressure from client/sales 1.43 0.56 14 -1.428 .155 department to provide respondent details to be used as sales leads

(xv) Use of data from one project in 1.31 0.58 15 9.900 .000* a related project by agencies

(xvi) Not being able to protect the 1.20 0.41 16 .507 .613 anonymity of respondents when they have been led to believe that their anonymity will be ensured

(xvii) Use of hidden tape recorders/ 1.03 0.17 17 2.811 .006* cameras etc. without the knowledge of respondents

(xviii) Use of respondent identification 1.00 0.00 18 .897 .317 techniques although an anonymous survey is promised

(xix) Others 1.09 1.40 - -

Measured on a scale from 1 to 5 with 1=Very Infrequently and 5=Very frequently. a 6 % of respondents did not consider this to be an ethical issue. b 9 % of respondents did not consider this to be an ethical issue.

* Significant at 0.05 level.

Volume 10, Number 3 • December 2010 149

nevertheless, on the lower side.

A substantial section of marketing research managers and a smaller number of agency personnel participating in the study were of the opinion that hiding the real identity of the sponsor and the purpose of the research from respondents was sometimes required for meeting the objectives of a study and may not be strictly termed as unethical as long as it does not harm the interests of the parties involved. This is consistent with the findings of other studies also. For example, Akaah and Riordan (1989) found that only 30 percent of marketing professional surveyed disapproved of the practice of hiding the real identity of the sponsors. Nevertheless, the issue does raise ethical questions and as far as possible requires measures such as informing about the true identity and purpose of the study after the data collection has been completed.

Interviewer dishonesty with regard to following the specifications and instructions for field work ranked as the third ethical issue in terms of frequency of encounter. This is part of the category of issues which have been collectively termed as research integrity (Hunt et al., 1984) and is concerned with the very credibility of the research function and needs ensuring that no compromises are made in this area. Not only are compromises in research design, execution and reporting, unethical but they also make poor marketing strategy in the long run (Schneider and Holmes, 1982).

Marketing research managers and research agency personnel differ with regard to perceptions about the frequency of encounter of a number of ethical issues. In almost all cases where differences exist, each group tends to rate issues pertaining to their own group as much less frequently encountered than do members of the other group.

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