Marketing Ethics: Enhancing Firm Valuation and Building Competitive Advantages
Year: 2016
Type: preprint
Abstract: Marketing ethics plays a critical role in forming, maintaining and sustaining long-term customer relationships. An ethical marketing practice is a key factor of organization’s success because it affects the organizations’ capability to build strong relationships with customers, and accordingly, it is one of the organizational drivers enhancing Customer Lifetime Value (CLV). The CLV of a customer represents the amount the customer will contribute to the bottom line of the firm over the span of the business relationship with them. Ethical marketing are practices that emphasize transparent, trustworthy, and responsible personal and organizational marketing policies and actions that exhibit integrity as well as fairness to consumers and other stakeholders. The ethical reputation of the organization results in customer trust which in turn leads to satisfaction and commitment to the organization and hence builds competitive advantages. Research provides various marketing ethics frameworks and valuation matrix along with numerical illustrations to understand how marketing ethics help organizations in improving overall performance and ultimately firm valuation.
Source: SSRN Electronic Journal
Author: Pankaj M. Madhani
Institution: ICFAI Business School
Language: English
Subfield: Information Systems and Management
Field: Decision Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2531003684