Beauty Salon Case Study

THE HONG KONG POLYTECHNIC UNIVERSITY

MM2711 Introduction to marketing

Individual Assignment on Marketing Ethics

Leung Wing Sze (12064446d) ,TUT003

Description

According to the List of shops adopting sales malpractices (Consumer Council, 2012), Q & A+ Health Spa repeated engagement in unscrupulous sales tactics, involving high-pressure sales. One of the consumers joined a trial session for newcomers at HK$88 at the beauty center. She was persuaded to take a package for HK$2,980 and the staff claimed was a cheaper offer with each treatment only cost around HK$100 during the treatment. The staff told her to pass her credit card for payment while she was lying with a facial mask. Then, staff said the transaction was unsuccessful and thus asked

That unethical company will influence these honest beauty salons indirectly and directly. It may violate the Unconscionable Contracts Ordinance (Cap. 458) about using undue influence or pressure to make contract with consumer.

Criticism

I thought Salon isn’t respect the consumer rights about the right to be informed, the right to choose, the right to be heard, the right to redress because it misled customer to make pursuing decision. Customer hadn’t made any written or verbal agreement with Salon so it violates the right to be informed. Customer hadn’t the right to choose the duration, amount and type of services. Although customer complained and the Council 's efforts in mediation, it wasn’t willing to offer settlement to complainants and remained unscrupulous sales tactics.

Salon promotes money-oriented and unethical marketing rather than effective and efficient marketing. That behavior can’t create value for customers and build up strong relationship with customers to capture value from customer in return. It may only survive in short-term not long

It also needs to strengthen law enforcement to against unethical marketing practices.

For the consumer group level, Consumer council can empower consumers to help themselves through education, such as press conference, talk and resource center to educate them on selecting and consuming products and services; be aware of falling prey to consumer traps, etc. It also can advocate best practice and competition in the marketplace, such as help and advice an industry to follow “Code of Practice” to provide quality of products and services.

For the company level, salon should follow “a Beauty Industry Code of Practice” to enhance the service quality of industry and build up consumer confidence in the beauty industry, such as provide clear information, strength communication with customers, how to handle complaints.

For the individual level, Consumer should ask to see a copy of the contract and related information, read and consider carefully before any purchase decision make. Also, they should not easy to disclose and hand over personal details (such as credit card information) to any