A personal credit assessment company has introduced a new product called "The Red Zone," a new product that provides per

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

A personal credit assessment company has introduced a new product called "The Red Zone," a new product that provides per

Post by answerhappygod »

A personal credit assessment company has introduced a new product called "The Red Zone," a new product that provides personal credit information to individuals. This product is marketed on the Internet so that an individual can subscribe to it with an annual membership that pays in advance of 99 riyals, after having a free trial for a month. As a way to attract customers
The company provides a credit report to customers during the trial period, and the advertising campaign focuses on taking advantage of the report to know the customer's credit status without indicating that this is at the time of the membership trial. It was an option for the customer to request this detailed report of all his credit operations and an analysis of his purchasing behavior, and the customers accepted it
Much appreciated on this report.
However, customers did not know that obtaining this detailed report means that they have accepted the annual membership and that their credit cards have been withdrawn 99 riyals as an annual membership. Complaints poured out against the company, and they considered it a form of fraud. The complaint was also submitted to the responsible authorities, as customers believe that they have been deceived.
As a director of this company, you have held a staff meeting to discuss the following:
1. Is “red zone” marketing legal?
2. Is “red zone” marketing ethical?
3. Do you see innovation in attracting customers?
4. Do you think that the company should return to focus on promoting the main product in the red zone without having a credit report, given that it was the report that attracted customers?
5. Do you recommend continuing in the same way
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply