Chapter 10: Questions and Answers
Chapter 10: Questions and Answers
Is CVS's marketing strategy to eliminate sales of cigarettes self-serving Please explain your answer.
CVS receives about 2 billion in revenue from tobacco sales annually. The marketing slogan of “Cigarettes Out, Health In” is self-serving because of the widespread media attention it attracts, which in turn, markets the CVS brand (Hemphill, 2014). The company’s decision to drop cigarettes from its stores is more about its rebranding strategy and is hardly motivated by its corporate social responsibility.
It would be unethical if CVS stood to gain financially from its marketing decision because it is widely based on deceitfulness. CVS is touting itself as a socially responsible company, but its true objective is to rebrand and attract media attention. Deceitful marketing strategies do not abide by ethical guidelines and are therefore dishonest. The average consumer will not be able to notice CVS’ rebranding strategy because the fronts of its stores will still be labelled CVS; however, its evolving business model will be reflected (Hemphill, 2014).
Do you believe customers own their own information?
Most consumers believe they own their information and are concerned about sharing personal information as well as data privacy issues. For example, people who use smart devices are concerned about the possibility that third parties can access their personal information through the devices. Consumers believe that they are the owners of the information collected through their smartphones as well as other smart devices (Schwartz, 2014). In the current era of big data, privacy is an issue that many consumers would like to address.
Do you believe they should be informed when and if a company is collecting information about their shopping or buying habits? Explain
Yes. They believe that when a company collects information about their buying or shopping habits, it should be done with their consent, and they should be informed. A transparent privacy policy should be created to explain to consumers the reasons why and how data about their shopping or buying habits is collected and used (Schwartz, 2014). Such openness will help to address customers’ concerns that companies are invading their privacy by collecting and using their personal information.
References
Hemphill, T. (2014). The real story behind tobacco-free CVS stores. Retrieved from
<http://www.realclearmarkets.com/articles/2014/12/08/the_real_story_behind_tobacco- free_cvs_stores_101424.html.>
Schwartz, M. (2014). Consumer privacy and data protection. New York: Prentice Hall Press.
