Question

A marketing research supplier that quotes an unrealistically low price for marketing research, only to raise it with add-ons, etc., is engaging in the ethical breach known as _______.

Answer 1

Answer:

A marketing research supplier that quotes an unrealistically low price for marketing research, only to raise it with add-ons, etc., is engaging in the ethical breach known as;

Low-ball pricing.

Explanation:

A market research supplier is a market research company that offers various services to its clients including; problem identification, data collection and analysis, research design and reporting. Businesses rely on accurate and reliable information for their success. This provides a base of knowledge about the existing and prospective customers, which is important in formulating strategies to ensure that set organizational goals are achieved. They also provide information about the competition which can be used to find ways of gaining a competitive advantage over them. Market research is also important in the planning process to ensure that all alternatives are considered beforehand to ensure that only the ones with higher potential of success is considered.

In the field of marketing research, there are ethical standards and practices to be met. Ethical standards are there to control the behavior of professionals in that particular field. However, there are certain behaviors that are considered as an ethical breach. An example is low-ball pricing which is the act of using a low price initially to attract clients then raising the price of the research later on through other means that the client was not aware of.