Key Terms
Source
Chonko and Hunt, Journal of Business Research, 1985.
Where it crosses the line
Compensating customers for giving references. Small thank-you gifts can be appropriate.
Not just
Will it work, does it fit brand guidelines, is it best practice.
Privacy
The ability of a person or group to control information about themselves and express themselves selectively.
Opt-in
Consumer must actively give permission for secondary data use. No action = no permission.
Opt-out
Consumer must actively decline secondary data use. No action = permission assumed.
Fraud
Deliberate deception with intent to cause damage.
FTC definition of deceptive practice
A representation, omission, or practice that is BOTH likely to mislead consumers AND likely to affect their behavior or
Outcome
Filed bankruptcy May 2015; CFPB won in federal court October
Three common reasons companies give business gifts
1. Appreciation for a past relationship or order 2.
Result
The ethics controversy drowned out any positive coverage. The company wasted the gift money, got weeks of bad press, and