A marketing research firm was hired by an electronics company to conduct a segmentation study, but the researcher found the main problem was distribution. Disclosing this could reduce profits for the research firm but conducting the originally requested study may not help the client. The researcher must decide whether to prioritize ethics over profits by telling the client about the real issue, or do the requested but less useful study. Both parties should focus on building trust through open communication and cooperation to find an ethical solution that benefits all.

1. Marketing Research on
ETHICAL or MORE
PROFITABLE ?
Guided by : Mervin Felix Caleb
Submitted by : Jallipalli Sai Teja
Allu Ganesh
Koppu Bhanu Prakash
M . Karthik

2. CASE STUDY :
 A marketing research firm is hired by a major consumer
electronics company (e.g., Philips) to conduct a large
scale segmentation study with the objective of
improving market share .
 Researcher after following the processes came to a
conclusion that problem is not market segmentation but
it is distribution.
 Their main problem is lacking an effective distribution
system because of this their market share is limited .
 For resolving this distribution problem it requires a
simple approach and this will reduce the cost and
expenses of the project and research firm profits .

3. What should the researcher do ???
 Should the research firm conduct the research the
client wants rather than the research the client needs
??

4. Problem Identification :
 Here a situation of looking into Ethics or Profits
occurred .
 Ethical guidelines indicates that the research firm
has an obligation to disclose the actual problem
to the client .
 Researcher can address the distribution problem
to the client, if he is interested in carrying out
the segmentation research .
 The reason is that the researcher doesn’t know
the motivation underlying the client`s behavior .

5.  Several ethical issues occur during development of
an approach .
 Client also thinks in a way that he can gain
knowledge or expertise of research firms without
paying and subcontracting the research .
 Ethically he cannot use the approaches of research
firm without paying them .
 Research firm should also develop new and
innovative models for each client rather than using
the same old models for everyone .

6. Solution :
 This type of ethical problems should be solved satisfactorily if
both the client and researcher adheres to the 7C`s :
 Communication
 Cooperation
 Confidence
 Candor
 Closeness
 Continuity
 Creativity

7. Conclusion :
 In this case both client & researcher should
look for ethics rather than profits .
 Main thing matters in the business is
reputation and image .
 Once if the trust and reputation degrades its
hard to retain .
 Mutual understanding and trust between
client and researcher is a key to mutual
benefits .

8. Refernce :
 From Marketing Research an applied orientation by Naresh
K Malhotra , Prentice hall of India Private limited.