Marketing Ethic

In: Business and Management

Submitted By richiejiang1993
Words 879
Pages 4
Agoda.com Arguable Unethical Marketing Behaviours

Agoda.com is a Singapore-based online hotel booking company specializing in the Asia Pacific market with a global network of more than 200 thousands hotels worldwide. After being merged in 2007 by the Priceline.com, one of the largest online travel-related services providers, Agoda.com was on its way of rapid expanding globally however, with its controversial marketing strategy of pricing, which is under heated debate. Therefore, this essay intends to examine the reasonableness and unethicality of its pricing promotion.

With the support of advanced customer database, Agoda.com could efficiently promote their “attractive prices” to individual customers according to their demands differently. For example, once a consumer has searched or booker some hotels within a target location, Agoda.com will send promotion email to those consumers with “special offers” according to the consumer’s searching history. This promotion practices seems to be consistent with the customer-driven marketing strategy since this allows the company to explore differentiated market segmentations with different consumers’ needs for different hotels (Woodruff, 1997). However, behind the successful strategy, it is likely to be ignored that the contents of its promotion should be considered as unethical issues, which would violate the code of AMA.

These controversial issues in those promotion emails mainly involve two aspects, misleading information and failure to disclose the full information. Firstly, Agoda.com will not disclose the full amount of charge in its promotion email. When one clicks the link in those emails to select a specific hotel, Agoda is going to show you the original price after their “discount”, which could be attractive enough to induce consumers to book. However, it will show you the additional amount of charge when you…...