Is Marketing Ethical? A Deep Dive into Scarcity Tactics and Ethics

The Intuitive Customer - Helping You Improve Your Customer Experience To Gain Growth

In this episode, we tackle a thought-provoking question from one of our listeners: Is it ethical to use urgency as a marketing tactic?

This question sparked a deep conversation about the ethics of digital marketing, particularly the use of scarcity to drive sales.

We feature insights from Daniel Bisett, partner and CXO at WeRock DM, and Marketing Professor at UT McCombs, who shares his thoughts after watching "The Social Dilemma" and wrestling with the impact of digital marketing on mental health.

Bisett discusses the ethical concerns of creating false urgency in marketing, comparing it to the stress and pressure felt by consumers during high-stakes purchases, like a kitchen remodel. He argues that manipulating customers with "FOMO" (Fear of Missing Out) can lead to hasty, anxiety-driven decisions, which ultimately harm the customer and the brand’s reputation.

Instead, Bisett advocates for building trust and long-term relationships by offering genuine value rather than pressure-filled transactions.

Bisett’s message and our subsequent discussion challenge marketers to reflect on their tactics and consider the long-term implications of their strategies, not just for their business, but for their customers' well-being.

In this episode, we further explore whether using behavioral science in marketing crosses ethical lines, especially when marketers understand more about customer behavior than the customers themselves. We also delve into the nuances of ethical intent, the role of empathy, and the importance of transparency in marketing practices. We also discuss how companies can ensure they are not just making sales but also treating customers with dignity and respect.

In this episode you will also learn:

• The ethical implications of using behavioral science in marketing.

• The difference between needs-based selling and manipulative sales tactics.

• The role of empathy in ethical marketing decisions.

• How intent and transparency can help marketers stay on the ethical side of business.

• Real-life examples of ethical and unethical marketing practices.

• Strategies for building long-term customer relationships based on trust and value.