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1、Marketing ethics Case Study: Ajisen RamenAjisen Ramen is a well-known ramen chain which entered Chinese market in 2001 and has now become a leading fast food restaurant operator in China. One of the most famous products of Ajisen is white broth. Stating that the slow-cooking soup has “fresh taste” a

2、nd “four times the calcium content in milk and ten times that in meat”, Ajisen has been charging consumers a higher price compared with other ramen restaurants. However, since July 2011, the company had been accused of using concentrated liquid, instead of the pork bones as advertised, to make the s

3、oup. Ajisen (China) later admitted the accusation but it still emphasized the high calcium content contained in the noodle soup, based on a test evaluation conducted by the China Agricultural University (CAU). This statement was denied by a professor of the CAU who took part in the evaluation. The p

4、rofessor pointed out that the sample they tested was only concentrated liquid, but not ramen soup. The media reports soon caused a clamor. Amid criticism about its fraudulent advertising, Ajisen experienced a sharp decrease in its share price as well as sales revenue in a short time. According to a

5、survey, the majority of participants felt disgusted and angry about Ajisens overstatement about the food and misleading promotions (Tang, 2011). In current business world, marketing ethics has been an increasingly important factor when the public evaluate the performance of a company. In order to en

6、hance consumers confidence in the integrity of the whole market, marketers are required to practice ethical values that are widely accepted. How to generate revenue is not the only task that companies should concern.In Ajisens “concentrated soup” scandal, however, the company has failed to fulfill t

7、he code of ethics promoted by American Marketing Association (AMA) and committed unethical behavior. Under the guide from AMA, there are six basic values that firms should comply with: honesty, responsibility, fairness, respect, openness and citizenship. In reality, firms should realize these basic

8、ethical values to maintain the entire market in a healthy condition. In terms of honesty and responsibility, Ajisen is unqualified. Knowing the fact that the white broth is originally made by concentrated liquid, Ajisen lies to its consumers by saying that the soup is fresh and cooked with pork ribs

9、, which is a kind of fraudulent misrepresentation and dishonest behavior. Even when the scandal was disclosed, Ajisen did not tell all the truth, regarding to the nutritional ingredients inside the soup. Thanks to the professor who revealed the real sample tested in the evaluation, Ajisen finally re

10、cognized the fact. Otherwise, it may continue to mislead the public and provide customers with food which is far below the value as it claims. Thus from the prospective of honesty, Ajisen is dishonest in dealing with customers and it is not trust-worthy. As a listed company, Ajisen also fails to beh

11、ave in the best interest of its shareholders. By misstating the ingredients in its soup, Ajisen may be able to attract more consumers and earn higher profits, if not discovered. However, the companys reputation would be ruined once the story is exposed to the public, which would then cause a dramati

12、c drop in its share price and a great loss to shareholders. The market has already witnessed about 40 percent decline in Ajisens share price and a huge plunge of its total market value just two weeks following the scandal. As a result, Ajisens stakeholders suffer. It is sure that the scandal has gre

13、atly hurt the publics confidence on Ajisen. To rebuild its reputation and credibility, Ajisen should admit the mistake and reform its business practice immediately. Compared with small domestic restaurants, Chinese customers normally tend to have higher expectations of foreign fast food chains (Keef

14、e, 2011), which indicates that Ajisen should reveal real and detailed information to customers. Ajisens management must be aware that both operation system and trust of customers contribute to business success. Apology is not enough, what the public look forward to is Ajisens further performance con

15、cerning its honesty and transparency. The fact that this secrete kept unknown until the media began to investigate also suggests a lack of supervision from the government. It is strongly recommended that the related authority establish more comprehensive and stricter safety regulation to regulate th

16、e market and safeguard consumers interests. Only when there exists a sound and effective market framework can the unethical behavior be greatly eliminated. References:Ajisen Ramen trapped in 'concentrated soup' scandal in China (July 25, 2011). Retrieved February 20, 2012 from Ajisen shares plunge following soup scandal (August 09, 2011). Retrieved F

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