Remarks on Marketing Ethics

In retailing, ethics can be defined as good business practices which deliver quality merchandise, value prices, and customer service. These elements must be supported by honest advertising and an unwaivering policy of standing behind the merchandise. In 1875, Montgomery Ward & Co. was the first American company to guarantee satisfaction or the return of money. Over the years, with the development of discount companies and specialty stores, department store customers drifted away. The general merchants failed to address the competitive issues and attempted to compete by lowering quality and reducing customer service. To survive, Montgomery Ward evaluated its options and decided to become a low cost operator, improving quality and service. A mission statement laid a foundation of principles by which the company would operate. The expansion of the "low prices every day" concept was supported by the largest marketing campaign in the company's history.