Ethically unethical marketing

Consumers worldwide notice that companies often use sneaky tricks to boost profits at the customers' expense. One common trick is reducing product sizes while keeping the price the same. For example, a popular noodle brand once sold 80-gram packs but now sells only 55 grams. Soft drinks and biscuits have also shrunk over time. This shrinkflation can go unnoticed until consumers compare new packs with older ones. Although it isn't fraud if the new weight is listed, it still raises ethical questions about whether companies should take advantage of customers' inattention.
Research by consumer groups like "Which?" in the UK reveals widespread shrinkflation in food and household products, with 60–70% of items showing gradual size reductions. Consumers remain unaware until comparing old and new packaging. It's a widespread practice by global multinationals.
Planned obsolescence is another common tactic, where products are designed with a short lifespan. For instance, a 2020 survey found that nearly 70% of smartphone users noticed performance issues within two years, prompting them to upgrade—even if their phones still worked. Manufacturers often seal batteries inside devices, making simple replacements nearly impossible, so consumers are forced to buy new models once performance declines. This practice isn't limited to electronics; many household appliances are now engineered to last 20% less time than a decade ago.
In digital services, Uber and other delivery apps have raised concerns about tracking users' phone battery levels and adjusting fares accordingly. While surge pricing is often cited during high demand, evidence suggests that these platforms may factor in battery levels when calculating prices. For example, the app may display higher fares or extra charges if your phone battery is critically low. This means that customers are in urgent need due to a dying battery. Exploiting the vulnerability of consumers is the new norm of innovative marketing.
Drip pricing is a deceptive practice widely seen in local apps. The initial advertised price looks attractive, but additional fees—such as delivery charges, tips, platform fees, and taxes—are added as customers proceed to checkout. According to a 2023 survey by Which?, about 45% of consumers discovered their final price was over 20% higher than expected. This tactic is common in online retail and food delivery sectors. Such practices demonstrate how marketers often rely on consumers not noticing hidden costs until it's too late.
In the past, I have observed that multinationals boosted product credibility by emphasising traditional ingredients such as Amla in shampoo or Zinc in supplements. Today, however, marketing has shifted towards technology, using buzzwords like "AI-powered," "deep learning," and "smart technology." These terms, while innovative-sounding, are often used for marketing appeal rather than genuine advancement. Whether it's washing machines or refrigerators, the promised high-tech features usually serve as clever branding to create an illusion of superiority, with actual benefits often remaining minimal.
Many consumers experience significant frustration with AMC and warranty issues. Hidden charges, confusing terms, and recurring fees keep them locked in and exploited. The promise of comprehensive service often turns into unexpected costs and poor support.
Understanding these tactics is the first step toward protecting your hard-earned money. Whether it's shrinkflation, planned obsolescence, hidden charges through drip pricing, or flashy yet superficial marketing claims, awareness of these strategies can empower consumers to ask questions, demand transparency, and ultimately make better purchasing decisions.
It's astonishing how these so-called "innovative" tactics leave consumers drowning in hidden fees and empty promises. Marketers, perhaps it's time to trade your gimmicks for genuine transparency—an ethical approach that respects your customers' hard-earned money. And to regulators: step in and put an end to this modern consumer exploitation before the next brilliant marketing buzzword masks another rip-off.
The author is president of the Institute of Cost and Management Accountants of Bangladesh and founder of BuildCon Consultancies Ltd
Comments