Business Studies

Buyer Topic 2 Q3 Conduct research and, in your own words, explain what constitutes a “vulnerable” consumer. Discuss the targeting of market segments that are considered “vulnerable,” including the identification of potential ethical issues that may arise when these market segment customers are targeted. Provide specific examples to illustrate your ideas. In replies to peers, include additional examples that illustrates the ideas presented in the initial posts.

ANSWER

Vulnerable Consumer

A vulnerable consumer is susceptible to a detriment because of personal circumstances especially when a firm acts without necessary care (Rosenbaum et al., 2017). The vulnerability of a consumer depends on their situation. Therefore, a consumer can be vulnerable in one situation yet not vulnerable in another situation. The vulnerability of consumers also varies depending on the specific factors of their situation. Various market segments can be considered vulnerable based on factors like age, income, race, ethnicity gender, and special needs. For instance, children are considered vulnerable because they are not fully matured and cannot make sound decisions as to what products they would like to consume and how they would benefit from them. market segments can be divided based on race where and products marketed to specific people based on the high probability of the people in their race using such products.

Marketing can be done to vulnerable populations without raising ethical issues if correctly done. However, there are marketing strategies that specifically take advantage of the vulnerability of the people as the points in which they are convinced to purchase products (Rosenbaum et al., 2017). For instance, aggressively marketing surgery products to children who cannot make comprehensible decisions on the amount of sugar to consume can be unethical. Also, the vicious marketing of menthol cigarettes to the black community has been identified as unethical because of the unethical turn that the campaign takes to convince the population to consume a product that undermines their health. Payday lenders take advantage of customers’ economic problems to sell them high-interest loans that sink them deep in credit card debts. When products are made and specifically targeted to a vulnerable group, ethical concerns arise. This strategy brings exploitation which dilutes the power of a fair and ethical society. Companies should carefully treat vulnerable populations when segmenting conducting marketing campaigns.

Reference

Rosenbaum, M. S., Seger-Guttmann, T., & Giraldo, M. (2017). Commentary: vulnerable consumers in service settings. Journal of Services Marketing.