My photo
Assistant professor of Management and Marketing. www.mohamednassar.com

Wednesday, April 1, 2009

How legal or ethical is that?!

Gillette has been caught hiding tiny RFID surveillance chips in the packaging of its shaving products. These tiny, high tech spy tags are being used to trigger photo taking of unsuspecting customers!

7 comments:

  1. The most important aspect to the customer is the value that the product presents to them, on the other hand consumers trusting the company is what makes it successful because the would want to buy even other products that they sell. Its very unethical of gillette to do that to its customers because not only its invading their privacy but also betraying the trust that was given to them. I think there are many other ways that the company can persue to see if their product is successful.

    ReplyDelete
  2. Building trust means an increase in sales; once trust is lost sales will decline dramatically. Gillette has made a huge mistake, which they will obviously pay for because now the word is out they will be overwhelmed with how fast it will spread. As Joe Girard's Law of 250 states: "Most people have about 250 other people important enough to invite to their wedding or funeral... each person whom I do business with represents 250 other people. If I do a lousy job, i have just made 250 enemies". This explains how negative word-of-mouth can destroy a company, so imagine what Gillette might anticipate in the following weeks to come. Fajer Al-Husaini

    ReplyDelete
  3. Commercial activities-marketing specifically- are exposed to many ethical questioning. There will always be a group that disagrees with a firm's action or behavior. However, if the firm is able to justify its behavior towards an action that may otherwise be viewed unethical in the eyes of the consumers, then the firm will be able to sustain itself in the long-run.

    In order to really provide a sound answer to the question above, one must look at this matter objectively. First, ethics by definition is the study of morality and standards of conduct. If an action violates the fundamentals that all human beings agree on as moral, then an action is considered unethical.

    What Gillette did may at first sound unethical, as immediately the public will view it as an invasion of privacy. However, one has to look at the motives that drove Gillette to use RFID tags in their products. RFID technology is a highly sophisticated contemporary technology used to track products, handle and manage inventory and container ships, and track sales. It helped in reducing time and miscalculations of inventories, and increased the efficiencies of supply chains.

    Gillette's intention to use the tags were as follows: "Our intention is very much pallet and case application within our supply chain," Paul Fox, a Gillette spokesman, told Silicon.com. "We have never, nor do we have, any intention to track, photograph or videotape consumers."

    Also, in terms of Marketing Research, Gillette aimed to understand how the razors were used by its consumers; i.e. shaving up or down to improve and develop its product. Therefore, from Gillette's point of view, their intention was purely concerned with understanding consumer behavior and improving their supply chains to benefit their consumers, and not to spy on them.

    Yet, had Gillette gone public and created awareness among its consumers that it would use tags to conduct a marketing research study and improve its product to enhance customer satisfaction then perhaps the negative image of Gillette being a spy wouldn't have formed in the first place. Or, had Gillette surveyed a number of people who accepted the idea of RF tags in their razors, and studied the behavior of that group then its consequences would have been much different.

    Marketing research activities intertwined with technology can produce great results, but we're living in an age with the an empowered consumer who has knowledge at his/her disposal. Therefore, high care must be taken before implementing a study.

    Perceptions differ, and consumers will not care to dwell on why a firm embedded tiny cameras, since the idea of camera itself sounds horrifying from a consumer's point of view. Consumer advocates will immediately trash down the name of the brand. For example, CASPIAN (Consumers Against Supermarket Privacy Invasion and Numbering) a consumer advocate organization set up a boycott against Gillette.

    In conclusion, there is no objective unethical conduct in Gillette's pure intentions to embed RFID tags in their shaving razors. However, as suggested earlier Gillette should've justified their reasoning. Lastly, technology is a blessing but it should not be abused and used in a way that may be perceived as unethical.

    Shaikha Al-Hashem

    ReplyDelete
  4. I believe that it's extremely unethical for Gillette to use RFID technology in their products without their customers knowing, if they had said that the chip was planted in their products it would have been fine, but getting caught in the act is simply wrong.

    Call me paranoid, but when RFID chips are embedded in your ID cards, your clothes, your possessions, you're effectively broadcasting who you are to anyone within range, the RFID's level of surveillance is so vast, that not only the government but corporations and criminals as well, will be unprecedented. In other words there simply will be no place to hide!

    Though this technology does have its strong points and advantages, I don't think it's time to be used for uninformed consumers; this is a massive invasion of privacy, and one of the most important things for a company is to have it's customer's trust so that they're loyal to you in the long run, because your current customers are the ones you should be focusing on.

    - Anood

    ReplyDelete
  5. This comment has been removed by a blog administrator.

    ReplyDelete
  6. Many thanks for the contribution, i personally found this link very useful!!! See how marketers can get creative!. I hope you agree with me if I move this link to my consumer behavior blog? Thanks

    ReplyDelete
  7. What the h*** are they thinking ? Planting computer chips in the packaging of shaving products is totally unacceptable . By this unethical action will put " Gillette" at a high risk of losing customers and decreasing profits. Probably , RFID could be better thing , If they used it in appropriate way during shipping from country to country by making sure that products arrive to the right destination . In some cases , sometimes the shipments are not in the right destination that it should be , so in this situation at least it could be tracked down , find it and ship it again to the right destination.
    In short , " Gillette" made a decision without being aware of the consequences that would occuar and jeopardize its business.

    H.A.S.

    ReplyDelete