The Effects of Unethical Marketing Practices on Nigerian ...

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Archives of Business Research – Vol.7, No.6 Publication Date: June. 25, 2019 DOI: 10.14738/abr.76.6716. Ayuba, B. (2019). The Effects of Unethical Marketing Practices on Nigerian Economy and the Quest for National Development. Archives of Business Research, 7(6), 191-211. The Effects of Unethical Marketing Practices on Nigerian Economy and the Quest for National Development Dr. Bello Ayuba Department of Business Administration, Faculty of Management Sciences, University of Abuja, Gwagwalada, Abuja, FCT- Nigeria. ABSTRACT The main objective of the study is to examine the effects of unethical marketing practices on the Nigerian economy. As part of the methodology both primary and secondary sources of data were used. The data were analysed using Descriptive Statistics, Chi – square and Regression Analysis to test the formulated hypotheses which reveals that, “unethical marketing practices affects the country’s economy in the areas of economic growth such as decline in GDP, Increased inflationary activity, decline in patronage leading to closure of factories and plants and subsequently, unemployment, as well as bribery and corruption, poor infrastructure and the lack of innovative entrepreneurship skills”. The findings also, reveal that the socially irresponsible actions of some Nigerian business managers cause environmental degradation of some basic needs in the course of marketing activities through air pollution, land pollution and water pollution resulting to huge waste of solid, liquid and gaseous substance which threaten societal well-being. Among the major recommendations are the need for Federal government to ensure that business regulatory bodies are alive to their responsibilities by ensuring that adequate laws with stiffer penalties on violations of marketing ethics are strengthened to help in combating all the unethical marketing practices bedevilling the Nigerian society. The study concludes that marketers should note that they are responsible for most of the activities necessary to create more customers; they should know that customer’s satisfaction should be the ultimate goal of any marketing activity and this must be achieved through enhancing societal well-being by being ethical and socially responsible in their marketing activities by shunning all those practices that are deceptive, exploitative and dangerous to human life. Keywords: Marketing Practice, National Development, Nigerian Economy, Unethical Conduct. INTRODUCTION There is a lot of debates and criticisms by scholars on the marketing discipline; marketing has taken the most of the criticisms as compared to other management fields (Kennedy & Lawton, 1993). The social criticism of marketing has been classified into those alleged to hurt individual consumers, society as a whole and other business firms (Kotler, 2003).It has been accused of unethical practices that encourage excessive materialism, environmental pollution and deceptive promotional campaigns, as well as influencing consumers into buying what they don’t really need or want. Other critics (such as Nantel & Weeks, 1996; Malliaris, 2001) were of the view that marketing pollutes the natural environment, results to insufficient social goods, cultural pollution and excessive political power which can impact negatively on any economy. However, in contrast to the assertions of its opponents, several marketing scholars believed that the core ideology for marketing is customer/consumer satisfaction. If customer satisfaction is the ultimate goal, one would have a hard time questioning its morality (Rao & Singhapakdi, 1997). Thus, there are two points of view, one that criticise marketing as being unethical, and the other that denies the ethicality of marketing arguing that customer satisfaction is marketing’s ultimate goal of any marketing practitioner. But the question is; do the Nigerian marketers provide the much needed satisfaction to their customers/consumers

Transcript of The Effects of Unethical Marketing Practices on Nigerian ...

ArchivesofBusinessResearch–Vol.7,No.6PublicationDate:June.25,2019DOI:10.14738/abr.76.6716.

Ayuba, B. (2019). The Effects of Unethical Marketing Practices on Nigerian Economy and the Quest for National Development. Archives of Business Research, 7(6), 191-211.

TheEffectsofUnethicalMarketingPracticesonNigerianEconomyandtheQuestforNationalDevelopment

Dr.BelloAyuba

DepartmentofBusinessAdministration,FacultyofManagementSciences,UniversityofAbuja,Gwagwalada,Abuja,FCT-Nigeria.

ABSTRACT

The main objective of the study is to examine the effects of unethical marketingpractices on the Nigerian economy. As part of the methodology both primary andsecondary sources of data were used. The data were analysed using DescriptiveStatistics, Chi – square and Regression Analysis to test the formulated hypotheseswhichrevealsthat,“unethicalmarketingpracticesaffectsthecountry’seconomyintheareas of economic growth such as decline in GDP, Increased inflationary activity,decline in patronage leading to closure of factories and plants and subsequently,unemployment,aswellasbriberyandcorruption,poorinfrastructureandthelackofinnovative entrepreneurship skills”. The findings also, reveal that the sociallyirresponsible actions of some Nigerian business managers cause environmentaldegradation of some basic needs in the course of marketing activities through airpollution,landpollutionandwaterpollutionresultingtohugewasteofsolid,liquidandgaseous substance which threaten societal well-being. Among the majorrecommendations are the need for Federal government to ensure that businessregulatory bodies are alive to their responsibilities by ensuring that adequate lawswith stiffer penalties on violations of marketing ethics are strengthened to help incombatingall theunethicalmarketingpracticesbedevilling theNigeriansociety.Thestudyconcludes thatmarketersshouldnote that theyareresponsible formostof theactivities necessary to create more customers; they should know that customer’ssatisfaction should be the ultimate goal of any marketing activity and this must beachieved through enhancing societal well-being by being ethical and sociallyresponsible in their marketing activities by shunning all those practices that aredeceptive,exploitativeanddangeroustohumanlife.Keywords:MarketingPractice,NationalDevelopment,NigerianEconomy,UnethicalConduct.

INTRODUCTION

Thereisalotofdebatesandcriticismsbyscholarsonthemarketingdiscipline;marketinghastakenthemostofthecriticismsascomparedtoothermanagementfields(Kennedy&Lawton,1993). The social criticism of marketing has been classified into those alleged to hurtindividualconsumers,societyasawholeandotherbusiness firms(Kotler,2003).Ithasbeenaccusedofunethicalpracticesthatencourageexcessivematerialism,environmentalpollutionanddeceptivepromotionalcampaigns,aswellasinfluencingconsumersintobuyingwhattheydon’treallyneedorwant.Othercritics(suchasNantel&Weeks,1996;Malliaris,2001)wereoftheviewthatmarketingpollutesthenaturalenvironment,resultstoinsufficientsocialgoods,culturalpollutionandexcessivepoliticalpowerwhichcanimpactnegativelyonanyeconomy.However, in contrast to theassertionsof itsopponents, severalmarketing scholarsbelievedthat the core ideology for marketing is customer/consumer satisfaction. If customersatisfaction is theultimategoal,onewouldhaveahardtimequestioning itsmorality(Rao&Singhapakdi,1997). Thus,therearetwopointsofview,onethatcriticisemarketingasbeingunethical, and the other that denies the ethicality of marketing arguing that customersatisfactionismarketing’sultimategoalofanymarketingpractitioner.Butthequestionis;dotheNigerianmarketersprovide themuchneededsatisfaction to their customers/consumers

Ayuba, B. (2019). The Effects of Unethical Marketing Practices on Nigerian Economy and the Quest for National Development. Archives of Business Research, 7(6), 191-211.

URL:http://dx.doi.org/10.14738/abr.76.6716. 192

throughexchangetransaction?ThishascontinuedtoremainaseriousmatterofconcernowingtotheseriesofcomplaintsonunethicalmarketingpracticesinNigeria.InNigeriatoday,themarketingenvironmentischaracterisedwithlotsofunethicalmarketingpracticeswhichhas eaten deep into the society (CPC, 2017). Critics ofmarketing inNigeriahave continued to accuse the Nigerian marketing system of harming consumers throughunethicalmarketingpracticesrelatedtothemarketingmixelements(i.e.product,price,place&promotion).Thesepracticeswhicharedeceptive,exploitativeanddangeroustohumanliferesulttoconsumer’sdissatisfactionandnegativelyaffectstheNigerianeconomywhichretardsthecountry’squestfornotationaldevelopment.It is in viewof this that this study is conducted to examine the effects of various unethicalmarketingpracticesontheNigerianeconomy.Eventhoughsimilarstudieswereconductedbyother researchers (Ayozie, 2013)whostudied the current ethical challenges in theNigeriancommercial banking sector and Aikaterini, George and Chryssoula (2008) who studied theethicalandunethicaldimensionsofmarketingandAyubaandAliyu(2018)whoinvestigatedunethicalbusinesspracticesinNigeria:causes,consequencesandcontrol,theirstudiesdidnotexamine the effects of unethical marketing practices on the Nigerian economy against thebackdropofthequestfornationaldevelopmentwhichthisstudyisdesignedtoaccomplish.Thestudyisimportantasitwillbeofimmensebenefitstobusinessorganisations,government(businessregulatorybodies/stakeholders),customers,studentsandresearcherswhommightwant to use the findings and recommendations to improve on their ethical standard andgeneralmarketingpracticesinNigeria.ProblemStatementA study conducted by Alexander (2002) shows that unethical marketing practices impactnegativelyontheeconomyofanynationwheresuchpracticeswerenotcurtailed.ThespateofunethicalmarketingpracticesinNigeriawassuchthatithasaffectedallfacetsoflifetherebyslowing down the pace of the country’s development particularly in the areas of economicgrowth, continued consumer dissatisfaction and environmental threatswhich affect generalsocietalwell-beingasaresultofunethicalactivitiesofsomemarketerssuchasenvironmentalpollution,faultyimplementationofmarketingmixdecisionsandexcessivematerialismduetotheget-rich-quicksyndromeresultingtosocialvices.Relatively,littleattentionhasbeengivento the study of the effects of unethical marketing practices from Nigeria’s economicperspective,especiallyfocusingonthoseunwantedsocietalproblemsofmarketingbedevillingthevarioussub-sectorsoftheNigerianeconomy.Thestudywillinvestigatetheseproblemssothatpolicyrecommendationswillbemadeattheendofthestudytowardsaddressingthem.ResearchQuestionsConsequentupontheabovestatedproblems,thefollowingresearchquestionswereraised:

i. TowhatextentdounethicalmarketingpracticesaffectNigeria’seconomicgrowth?ii. How do unethical marketing practices in Nigeria affect customer’s/consumer’s

satisfaction?iii. To what extent does the unethical conduct of Nigerian marketers result to

environmentalpollution?iv. How does excessivematerialism arising fromunethicalmarketing practices result to

increasedsocialvicesinNigeria?v. What are those unethical marketing practices leading to faulty implementation of

marketingmixdecisionsamongNigerianmarketers?

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ObjectivesoftheStudyThemainobjectiveof thestudy is toexaminetheeffectsofunethicalmarketingpracticesontheNigerianeconomyinthecountry’squestfornationaldevelopment.Thespecificobjectivesareto:

i. Examine the extent towhich unethicalmarketing practices affect Nigeria’s economicgrowth.

ii. Evaluate how unethical marketing practices in Nigeria affect customer’s/consumer’ssatisfaction.

iii. Assess the extent to which unethical conduct of Nigerian marketers result toenvironmentalpollution.

iv. DeterminehowexcessivematerialismarisingfromunethicalmarketingpracticesresulttoincreasedsocialvicesinNigeria.

v. Appraise those unethical marketing practices leading to faulty implementation ofmarketingmixdecisionsamongNigerianmarketers.

StatementofHypothesesThefollowingNullhypotheseswereformulatedandshallbetestedinthecourseofthestudy:Ho1:UnethicalmarketingpracticesdonothavesignificanteffectonNigeria’seconomicgrowth.Ho2:Unethicalmarketingpracticesdonotaffectcustomer’s/consumer’ssatisfaction.Ho3:UnethicalconductofNigerianmarketersdonotresulttoenvironmentalpollution.Ho4:ExcessivematerialismarisingfromunethicalmarketingpracticesdonotresulttoincreasedsocialvicesinNigeria.Ho5: Unethical marketing practices do not lead to faulty implementation of marketing mixdecisionsamongNigerianmarketers.ScopeandLimitationsoftheStudyThis study focused on the effects of unethicalmarketing practiceson theNigerian Economyand the quest for national development. The study focused on those unethical marketingpracticesrelatedtothemarketingmixelements(i.e.productprice,place&promotion).Ithasbeenemphasizedthatmarketingexecutiveswhotakestrategicdecisionsareoftenfacedwithethical conditions and their decisions are related to all sidesof themarketingmix elements(Siham,2013).Thestudyinvestigatedthoseunwantedmarketingactivitiesretardingnationaldevelopment in the areas of economic growth, consumers ‘satisfaction, environmentalpollution, excessivematerialism and faulty implementation ofmarketingmix decisions. Thechoice for thesewas inviewof the fact that theyare themajor societalmarketingproblemsthat are generated consciouslyorunconsciouslywith serious negative consequences on anycountry’seconomy(Malliaris,2001).Thestudyfocusedontheperiod2010to2016;the6yearperiod that witnessed massive influx of substandard products in the country (CPC, 2014).However, the main limitation of this study is that it only considers customers/consumersperspective and some marketing managers without investigating the unethical activities inMinistries, Departments, Agencies (MDA’s), Commissions and that of other governmentofficialsinthestrategicsub-sectorsoftheNigerianeconomy.

LITERATUREREVIEWConceptualIssuesMarketingMarketingisasocialandmanagerialprocessbywhichindividualsandgroupsobtainwhattheyneedandwantthroughcreatingandexchangingproductsandvaluewithothers(Kotler,2003).It has been defined as the whole business seen from the point of view of its final result,customersatisfaction (Drucker,1973).However,marketing is everythinga companydoes toacquire customers andmaintain a relationshipwith them. Even the small tasks likewriting

Ayuba, B. (2019). The Effects of Unethical Marketing Practices on Nigerian Economy and the Quest for National Development. Archives of Business Research, 7(6), 191-211.

URL:http://dx.doi.org/10.14738/abr.76.6716. 194

thank-youletters,playinggolfwithaprospectiveclient,returningcallspromptlyandmeetingwithapastclientforcoffeecanbethoughtofasmarketing.Thereexistasmanydefinitionsascontributedbynumerousscholarsonthesubjectbutthedefinitionscommonlyreferredtoarethose of the American Marketing Association (AMA, 2004) who defined marketing as anorganizational function and a set of processes for creating, communicating, and deliveringvalue to customers and for managing customer relationships in ways that benefit theorganizationanditsstakeholders.MarketingMixMarketing mix is considered the most famous phrase used in marketing which has beendescribedastheelementofmarketingtactics(Kotler&Armstrong,2009).Itisthetermusedtodescribe the combination of the four inputs that constitute the core company’s marketingsystem i.e., Product, Price, Place andPromotion. Some authorshave attempted to extend itsusefulness by proposing a sevenP’s, such aspeople, process and physical evidence (Jobber,1998).Marketingmix are setof controllable tacticalmarketing tools that the firmblends toproduce the response it wants in the target market. They are the parameters that themarketingmanagercancontrol.Allmarketingdecisionsaregenerallyanchoredonorfallintothesefourcontrollablecategories.MarketingEthicsEthics in marketing can be considered as a moral judgment and behaviour standards inmarketingpracticesormoralcodeorsysteminmarketingarea(Siham,2013).Itisconcernedwith the application of ethical consideration to marketing decision making which involvemakinghonest claimsandhelping to satisfy theneedsof customers.Ethicsareembodied inmarketingpracticesintermsofsocialmarketing(Piacentini,Mcfadyen&Eadie,2000).Socialmarketingemphasizesachievingbalanceamongbusinessprofit,consumerneedsanddesires,and society’s long-termconcerns.Thegoalofsocialmarketing is thewell-beingof society, itencouragesmarketerstoembodysocialandmoralissuesintheirpractices(Crane&Desmond,2002). It can however, be concluded thatmarketing ethicsmeans acting inways consistentwithwhatsocietyandindividualstypicallyseeasgoodvalues.UnethicalMarketingPracticesUnethical marketing practices can be described as a kind of practice that are deceptive,exploitative and dangerous to human life (Kotler, 2003). It is any behavior within themarketing function that is illegal or morally unacceptable to the larger community (Jones,1991).Itissimplythecriticismsofmarketing.Unethicalbehaviourinmarketingreferstothoseactionsthatdon’tconformtotheacceptablestandardofbusinessoperation,doingwhatisrightineverysituation.Insomecasesitmaybeanindividualwithinabusinesswhoisunethicalinthe cause ofhis/her job, and other timesweare talking about corporate culture,where thewhole business is corrupt from the top to down, with disastrous result for the society.Unethicalmarketingactivities,incontrast,candestroyyourbusiness'sreputationandpossiblyleadtolegaltroubles(Jones,1991).ConsumerSatisfactionConsumersatisfactionisameasureofhowproductsandservicessuppliedbyacompanymeetorsurpassconsumerexpectations.Itisdefinedas"thenumberofconsumersorpercentageoftotalconsumers,whosereportedexperiencewithafirm,itsproducts,oritsservices(ratings)exceeds specified satisfaction goals" (Chauhan & Limbad, 2013). Satisfied customers arecentral to optimal performance and financial returns. Placing a high priority on customersatisfaction is critical to improved organizational performance in a globalmarketplace. Any

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businessislikelytolosemarketshare,customersandinvestorsifitfailstosatisfycustomersaseffectively and efficiently as its competitors are doing; customer satisfaction is customer’sreaction to the stateof satisfactionandcustomer’s judgmentof satisfaction level (Anderson,Fornell&Mazvancheryl,2004).EmpiricalLiteratureEmpirical findings have shown that there are several studies on consumer’s judgement ofunethical behaviour in marketing. Several studies conducted by Singer and Singer (1997)found out that proximity has significant influence on overall ethicality in marketing whileBarnett, (2001) and Frey (2000) found out that social consensus and seriousness ofconsequencesarethemostinfluentialofthemoralintensityvariables,andimpactpositivelyonconsumersjudgementofunethicalbehaviourinmarketing.Other research findings indicate that consumers often evaluatemarketplace transactions byconsideringhowequitablyeachpartyhascontributedtotheexchange.SzymanskiandHenard(2001)whoadoptedtheuseofanequityapproachtomodelexchangeevaluationsupportedbymeta-analysis findings show that perceived equity was found to be a strong predictor ofcustomer satisfaction. Further, Oliver and Swan (1989) identified perceived fairness as adominatingmediatorvariable in consumers’satisfactionevaluation.Perceived fairness, fromthe consumer’s point of view, isdefined as the perception that the seller and buyer receiveroughlyproportionalmaximumoutcomesrelativetotheirminimalinputs.Severalstudieshaveshownthatperceivedfairnessimpactpositivelyonconsumers’reactionstovariousactivitiessuchasperceivedpricefairness(e.g.,Campbell,1999andOliver&Swan,1989).Moreover,Singer(1996)inadditionfoundthatconsiderationsoffairnessaresignificantpredictors of overall ethicality. The study of Ayozie (2013) revealed that society expectsreasonable ethical conduct on the part ofmarketing executives as theymake decisions thataffect the livesofotherpeople.Heemphasizedthatmoralstandardsareexpected fromtheirmarketingactivitiesandaccordingtohim, it is thegreatestsocialandeconomicproblems inNigeriaandindeedAfrica,whichmustbetackled,isthatofbreakdowninmorals,workethics,discipline,socialresponsibilityandgeneralcivilityamong itscitizens. Ebitu(2014)reportedseveral actsof indiscipline,whichhad their roots insocio– culturalpatterns in thepoliticalprocess,economicsystem,psychologicalorientation,familybackground,leadershipbehaviour,value system, legal/judicialsystem,andmodernizationprocess,majorlydue tomanagementslacks, lackofmotivationand lackofcommitmenttoreligioustenets.All thesehadmadetheattainmentofnationaldevelopmentgoalsverydifficulttoachieveinNigeria.Ayozie (2013) argued that ethics are not placed over business and that business itself is anethics,definedbyethics,andmadeconceivablebyethics.InNigeriathereiswidespreadlackofcommitment to ethical behaviour concern for excellence and self-reliance in NigerianOrganizations.TheoreticalFrameworkandBasesforthestudyMost ethical decision-makingmodels,whether implicitly or explicitly, revolve aroundRest’s(1986) four basic components: recognition of a moral issue, making a moral judgment,establishingamoral intent, andengaging inmoralbehaviour.TheRest’smodeldescribe theprocess of how individuals make ethical judgments, defined as ‘‘deciding what is right orwrong in a situation’’ and then act on the judgment. Although research indicates that thejudgmentofethicalbehaviorinmarketingisintheeyeofthebeholder,itisalsoimportanttounderstand how other stakeholders judgemarketers’ behaviour (Trevino, 1986).Marketingscholarsandpractitionersalikehavelongbeeninterestedinconsumers’reactionstoproduct

Ayuba, B. (2019). The Effects of Unethical Marketing Practices on Nigerian Economy and the Quest for National Development. Archives of Business Research, 7(6), 191-211.

URL:http://dx.doi.org/10.14738/abr.76.6716. 196

failures, service failures and negative publicity (Ahluwalia, Burnkrant&Unnava, 2000). Yet,onlyrecentlyhaveresearchersbeguntoinvestigateconsumerreactionstoquestionablemoralconduct of corporate marketers, which may have a serious adverse impact on a firm’srelationshipwithitscustomers(Bejou,Ennew&Palmer,1998).Equitytheory(Szymanski&Henard,2001)wasusedasthetheoreticalunderpinningforthisstudy.Equity theoryargues that ifonepartyperceivesanotherpartybenefitingunfairly, thedisadvantagedpartyviewsthesituationasinequitable,andattemptstoregainbalance.Actionsmayconsistofnegativeword-ofmouth to friendsand family, complaints to the companyorthirdpartyorganizations,ornofuturepurchasesfromthecompany.Thetheorypostulatethatthe relationship a company builds with their consumers, whether directly or indirectly,impacts on their ethical judgment of a situation, and in turn the satisfaction and behavioralintentions towards the firm. Themodel predicts that not only does perceivedmagnitude ofharmimpactperceivedfairnessofthesituation,butcustomercommitmentwillalsoinfluencetherelationshipbetweenthesetwovariables.

METHODOLOGYThe study is a survey research design with significant combination of being descriptive,explanatoryandexplorat-ory innature. Firstly,we seek todescribe therealityregarding theeffects of unethical marketing practices on the Nigerian economy making it descriptive.Secondly, the study seeks to establish the relationship that exists between some specificvariablesofnationaldevelopment,makingitexplanatory. Thirdly,inthisstudyweconductedpilot study to test the validity and reliability of our research instruments which makes itexploratory.Furthermore,thestudycombinestheuseofbothqualitativeandquantitativedata;the qualitative datawere the survey data used tomeasure the unethicalmarketing practicevariableswhilethequantitativedatawasusedtomeasuresomeaspectsoftheeconomicgrowthvariablesfornationaldevelopment.Thestudytargetedapopulationof2,480respondentsacrossvarious locationswithinthesixgeo-politicalzonesofthecountry.Asamplesizeof344washoweverarrivedatusingtheTaroYamane from the targeted population. A non-probability purposive sampling technique/judgmental samplingwas used in distributing the questionnaires. Datawere collected fromprimaryandsecondarysources.Theprimarydatawasgatheredusingquestionnaireswithfivepoint Likert-scale administered tomarketing practitioners (owners,managers/executives &employees) and their customers/consumers of various categories of products (consumers&industrial products) including chains of marketing intermediaries such as wholesalers,retailers, agents, distributors/dealers and some officials of government business regulatoryagencies.While in this study, the secondary datawere obtained from the Nigeria EconomicRecoveryandGrowthPlan(ERGP,2017-2020)documentandstakeholderorganisationssuchasConsumerProtectionCouncil(CPC),NationalAgencyforFoodandDrugsAdministrationandControl (NAFDAC), Standard Organization of Nigeria (SON) and some text books, internetmaterials were also consulted in the course of the study. The data were analysed usingDescriptiveStatistics,Chi-SquareandRegressionAnalysis(CorrelationCoefficient)totestthehypothesesofthestudyinlinewiththeobjectivesofthestudy.Content validity and construct validity were used to validate the structured questionnaireinstrument by administering 28 percent of the questionnaires to experts in the field ofmarketingethics.Alltheitemsmeasured,indicatedhighreliabilityof0.77whichisabovetheminimumcut-offthumbmark.

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RESULTSANDDISCUSSIONResponseRateOf the 344questionnaires distributed, 301 were returned completed and 43 were eitherreturned uncompleted or unusable-generally because the respondents did not provide theneeded informationasenunciated in theobjectivesof thestudy. In total,88%responseratewasachieved.Itisacknowledgedthattheresponserateisrelativelyhigh;thisisinviewoftherespondent’sinterestinfindinglastingsolutiontounethicalmarketingpracticescharacterizingtheNigerianenvironment.Table1showsthequestionnaireresponsesbyrespondentswhoexpressedtheirviewsontheeffects of unethical marketing practices on Nigerian economic growth and the quest fornationaldevelopment.Fromthetable,marketingpractitioners(owners,managers/executives&employees)andtheircustomers/consumersofvariouscategoriesofproducts(consumers&industrial products) including chains of marketing intermediaries such as wholesalers,retailers,agents,distributors/dealersandsomeofficialsofgovernment’sbusinessregulatoryagencies which cuts across various locations in the six geo-political zones of the countryrespondedinthestudy.

Table1:ResponseRateValid

Respondents Location No.ofQuestionnairesAdministered

No.ofQuestionnairesRetrieved

Percent

MarketingPractitioners(BusinessOwners,Managers/Executives&Employees)

SixGeo-politicalZones

88 72 23.92

Customers/Consumers(Industrial&ConsumerProducts)

SixGeo-politicalZones

139 125 41.53

MarketingIntermediaries(Wholesalers,Retailers,Agents&Distributors/Dealers)

SixGeo-politicalZones

97 86 28.57

OfficialsofGovernment’sRegulatoryAgencies(CPC,NAFDAC&SON)

SixGeo-politicalZones

20 18 5.98

Total 344 301 100.0

Source:SurveyData(2017).

Thesixgeo-politicalzonesofthecountrycoveredinthestudyinclude;theNorth-Centralwhichcomprises Benue, Kogi, Kwara, Nasarawa, Niger, Plateau, and the Federal Capital Territory,Abuja;North-EastcomprisingofAdamawa,Bauchi,Borno,Gombe,TarabaandYobeStatesandNorth-West(Jigawa,Kaduna,Kano,Katsina,Kebbi,SokotoandZamfaraStates).OthersincludeSouth-South (Akwa Ibom,Bayelsa,CrossRiver,Delta,EdoandRiversStates)andSouth-East(Abia,Anambra,Ebonyi,Enugu,andImoStates),aswellastheSouthWest(Ekiti,Lagos,Ogun,Ondo,OsunandOyoStates).The table indicates that customers/consumers, marketing intermediaries and marketingpractitioners completed and returned the larger percentages of the questionnaires which

Ayuba, B. (2019). The Effects of Unethical Marketing Practices on Nigerian Economy and the Quest for National Development. Archives of Business Research, 7(6), 191-211.

URL:http://dx.doi.org/10.14738/abr.76.6716. 198

accounted for 125 or 41.53%, 86 or 28.57% and 72 or 23.92% of the completedquestionnaires,respectively.Officialsofgovernment’sbusinessregulatoryagenciesfromCPC,NAFDACandSONcompletedtheleastnumberofquestionnaireswith18or5.98%ofthetotalresponses. The implication of this findings to the study, is that the right category ofrespondentswhoarecompetenttocontributetothesubjectmatterweretargetedinthestudytherebyprovidingopportunitiesforstakeholderstocontributetothediscourse.CharacteristicsofRespondentsTable 2 shows the characteristics of respondents. As can be seen, information on five (5)different characteristics of respondents that are relevant to the study were collected andinterpreted.Informationonrespondents’gender,age,maritalstatus,educationalqualificationand occupation were collected to help in our analysis. From the table, majority of therespondents (115or38.21%) are over35 yearsoldwith those between the agesof 56 andaboveconstitutingthe lesserpercentage(19or6.31%).This,nodoubt,would further justifyour results since most of the responses were presumed to be emanating from those agecategorywiththenecessaryrequirementtocontributeto thesubjectmatter in linewiththeresearchobjectives.The table also shows that, the females constitutedmajority of the respondentswith 153 or50.83%while,themalesaretheleastoftherespondentsconstituting149or49.17%.Onthesame Table 2, the marital status of the respondents indicates that those who are marriedconstituted157or52.16%oftherespondentswhilethesinglesaccountedfor144or47.84%.Theclosenessof thepercentageof theanalysisshowsthatunethicalmarketingpracticesarenot issues for serious concern only amongst couples in Nigeria but even to those that aresingle.TheeducationlevelsasshowninTable2,wereevenlydistributed.Virtuallyalltherespondentswereeducated,with30.90%havingatleastaBachelor’sdegreecertificate;20.27%havetheirPostgraduatedegrees.Diplomaholderswere18.27%whileotherswithcertificatesotherthantheonesmentionedearlier(atleasteducationuptoPost-secondarylevel andthosewithHNDandDoctorallevelofeducation)were30.56%.Thesestatisticsfurtherindicatethatmostof the respondents had higher education while a relatively small number had at least highschool education necessary for the respondents to have an informed knowledge on thoseunethicalmarketingissuesaffectinggrowthoftheNigerianeconomy.

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Table2:CharacteristicsofRespondentsS/N Characteristics Respondents’Category Frequency Percent

1. Age 26–35years 80 26.5736–45years 115 38.21

46–55years 87 28.90 56yearsandAbove 19 6.31 Total 301 100.02. Gender

Male 148 49.17

Female 153 50.83 Total 301 100.03. MaritalStatus Single 144 47.84 Married 157 52.16 Total 301 100.04. Educational

QualificationDegree 93 30.90

Post-graduate 61 20.27 Diploma 55 18.27 Others 92 30.56 Total 301 100.05. Occupation CivilServants 71 23.59 Taxi/TruckDrivers 52 17.28 Students 63 20.93 Professionals 54 17.94 Others 61 20.27 Total 301 100.0

Source:SurveyData(2017).

Thetablealsoshowstheoccupationoftherespondents.Fromthetable,bothrespondentsareeither from the public sector or from the private sector. This include civil servants(71/23.59%);Taxi/Truckdrivers(52/17.28%);studentsofsecondaryandtertiaryinstitutions(63/20.93),Professionalssuchasacademics,doctors,pharmacistsandconstructionengineers,aswellasArmedforcesandParamilitaryofficers(54/17.94).Othersincludeoperatorsofsmalland medium scale enterprises such as vulcanizers, factory workers, carpenters,communicationandoilandgasmarketers,manufacturersetc.(61/20.27).TheimplicationofthisfindingtothestudyisthatthetargetrespondentsarepeopleinvolvedindifferentkindsofoccupationswhoearnwagesandwiththerequiredincomeleveltohaveexperiencedunethicalconductsofNigerianmarketersintheirday-to-daypurchasesofproductsorservices.DescriptiveStatisticsontheExtenttowhichUnethicalMarketingPracticesaffectsNigeria’sEconomicGrowthTable 3 shows a descriptive statistics on the effects of unethical marketing practices onNigeria’seconomicgrowth.EachvariableunderstudyhasLikert-scaleof1to5rangingfromstronglydisagreetostronglyagree.Respondentswereaskedtodescribetheextent towhichunethical marketing practices affects Nigeria’s economic growth with respect to sevendifferentvariablesunderstudynamely:declineinGrossDomesticProduct(GDP),increaseininflationaryactivity,decline inpatronageandclosureof factoriesandplants.Othervariablesunder study include encouragement of corrupt practices, provision of poor infrastructuralfacilitiesandlackofinnovationandentrepreneurshipskills.

Ayuba, B. (2019). The Effects of Unethical Marketing Practices on Nigerian Economy and the Quest for National Development. Archives of Business Research, 7(6), 191-211.

URL:http://dx.doi.org/10.14738/abr.76.6716. 200

Table3:EffectsofUnethicalMarketingPracticesonNigeria’sEconomicGrowth

S/N VariablesUnderStudyEffectsonConsumersSatisfaction

N MinimumMaximum Mean Std.Dev. Decision1. DeclineinGDPresultingtopoorlabour

utilizationandlabourinefficiency.301 1.00 5.00 4.02 1.312 Agree

2. IncreaseinInflationaryactivitywhichaffectspurchasingpowerthatresultinconsumerdissatisfaction.

301 1.00 5.00 3.69 1.256 Agree

3. DeclineinpatronageresultingtolowincomewhichaffectsstandardoflivingofNigerians.

301 1.00 5.00 3.94 1.278 Agree

4. Closureoffactoriesandplantsleadingtomassiveunemployment.

301 1.00 5.00 3.72 1.372 Agree

5. Encouragementofcorruptpracticeswhichareretrogressivetothecountry’sdevelopment.

301 1.00 5.00 3.73 1.382 Agree

6. Provisionofpoorinfrastructuralfacilitieswhichretardeconomicgrowthanddevelopment.

301 1.00 5.00 3.95 1.282 Agree

7. LackofInnovationandentrepreneurshipskills. 301 1.00 5.00 3.71 1.265 AgreeValidN(listwise)301

Source:GeneratedbytheAuthorusingSPSS(Version20)

Fromthetable,theminimumandmaximumvalueforthelevelofagreementonthedeclineinGDPis1 to5andtheMeanandStandardDeviation is4.02and1.31,respectively.Theresultshowsthattherewasvarietyofopiniononthatvariableandthehighstandarddeviation(1.31)signifies that the data arewidespread. Statistically, the high standard deviation implies thatunethical marketing practices affect Nigeria’s Gross Domestic Product in the areas of poorlabour utilization and labour inefficiency which affects issues of wealth creation such asinvestment opportunities, savings and financialmarket development due to those unethicalmarketing practices which affected international trade that constituted serious barriers toforeignexchangeearningsforincreasedeconomicgrowth.Increase in inflationary activity ranges from1 to 5 and theMean and StandardDeviation is3.69and1.26,respectively.Theresultshowsthattherewasvarietyofopiniononthatvariableandthehighstandarddeviation(1.26)signifiesthatthedataarewidespread.Statistically,thehighstandarddeviationimpliesthattheagreementontheopinionthatincreaseininflationaryactivity arising from unethical marketing practices in the foreign exchange marketsparticularlyactivities in theparallelmarketsaffects thenairastrengthand itsstabilityin themarket place which results to volatility and decline in the purchasing power of individualbuyersthatresultinconsumerdissatisfactionisalsoveryhigh.Declineinpatronagerangefrom1to5andtheMeanandStandardDeviationis3.94and1.28,respectively.The resultshows that therewasnovarietyofopinionon thatvariableand thehigh standard deviation (1.28) signifies that most respondents express close opinion.Statistically,thehighstandarddeviationimpliesthattheagreementondeclineinpatronageasaresultofunethicalmarketingpracticessuchasusingpricingdimensiontoexploitonbuyersresulttolowincomeandsubsequently,declineindemandwhichaffectsthestandardoflivingofNigeriansisalsoveryhigh.Closureoffactoriesandplantsrangefrom1to5andtheMeanandStandardDeviationis3.72and1.37,respectively.Theresultshowsthattherewasvarietyofopiniononthatvariableandthehighstandarddeviation(1.37)signifiesthatthedataarewidespread.Statistically,thehighstandard deviation implies that the agreement on the opinion that closure of factories andplantsleadtomassiveunemploymentisveryhigh.

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The resultsof encouragement of corrupt practices, poor infrastructural facilities and lack ofinnovation and entrepreneurship as a result of unethical conduct by marketers also showsvariety of close opinion with high standard deviation implying that the agreements onunethical marketing practices such as bribery of officials of business regulatory bodies,nepotism, unfair treatment and undue favouritism and lop-sidedness in the provision ofinfrastructure(suchasroads,electricitysupply,portabledrinkingwateretc.)bygovernmentand its poor support towards the development of small and medium scale businesses inNigeria,aswellas lackofdevelopmentofinnovativeandentrepreneurialskillswhichaffectsR&Dactivitiesandpatentingofcreativeworksforcommercializationarefoundtobeveryhigh.However,basedontheresultssummary,itisquiteobviousfromthemeanresults(Variables1-7) that all the targeted respondents agreed that unethical marketing practices affect thecountry’s quest for national development in several areas of economic growth anddevelopmentwhichgoesagainstmoralvalues,workethics,discipline,socialresponsibilityandgeneral civility that affects the country’s economy. These findings are consistent with theresearch finding of Ayozie (2013) who found that morals, work ethics, discipline, socialresponsibility and general civility are the greatest social and economic problems caused byunethicalconductamongprofessionalsinNigeriaandindeedAfrica.DescriptiveStatisticsonhowunethicalMarketingPracticesaffectConsumerSatisfactioninNigeriaTable4isdescriptivestatisticsshowingextentoftheagreementonhowunethicalmarketingpracticesaffectconsumersatisfactioninNigeriausingseveralvariablesmeasurement(1-3)asdescribed by different targeted groups of customers/consumers cutting across the six geo-politicalzonesofthecountry.Ascanbeseenfromthetable,all theconsumers investigatedagreedthat theysufferedmostfromthekindofunethicalmarketingpracticesthataredeceptive,exploitativeanddangeroustohumanlife.Fromthetable,theminimumandmaximumvalueforthelevelofagreementonthe exploitation of Nigerian consumers through high prices is 1 to 5 and the Mean andStandardDeviation is3.70and1.25,respectively.Theresultshowsthat therewasvarietyofopinion on that variable and the high standard deviation (1.25) signifies that the data arewidespread. Statistically, the high standard deviation implies that unethical marketingpractices affect consumers through high prices as findings show that consumers are beingforcedtopayforthecostofdistribution,promotionandexcessivemark-ups.Pricesareinflatedbygreedymiddlemen,markup thepriceofproducts substantiallybeyond thevalueof theirservicesleadingtomonetarylossandtotaldissatisfactionafterpurchase.

Ayuba, B. (2019). The Effects of Unethical Marketing Practices on Nigerian Economy and the Quest for National Development. Archives of Business Research, 7(6), 191-211.

URL:http://dx.doi.org/10.14738/abr.76.6716. 202

Table4:DescriptiveStatisticsshowinghowUnethicalMarketingPracticesaffectConsumerSatisfactioninNigeria

S/N UnethicalMarketingPracticesEffectsonConsumersSatisfaction

N MinimumMaximum Mean Std.Dev. Decision1 ExploitationofNigerianconsumersthrough

highprices;asconsumersarebeingforcedtopayforthecostofdistribution,promotionandexcessivemark-upsleadingtomonetarylossandtotaldissatisfactionafterpurchase.

301 1.00 5.00 3.70 1.255 Agree

2 Throughdeceptive/misleadingpromotionalcampaignssuchasmisleadingadvertising,exaggeration,re-branding,refurbishing,pushysalestactics/highpressuresellingandspaminfluencingconsumersintobuyingwhattheydon’treallyneedorwantbelievingthattheywillgetmorevaluethantheyactuallydo.

301 2.00 5.00 4.00 1.302 Agree

3 Theproliferationofshoddyorunsafeproducts,poorservicetothedisadvantageofconsumersandplannedobsolesceendangersthelifeofNigerianconsumersthatmightresulttodeathorpermanentdisabilities.

301 1.00 5.00 3.71 1.265 Agree

Source:GeneratedbytheAuthorusingSPSS(Version20)

Fromthetable,theminimumandmaximumvalueforthelevelofagreementontheeffectsofunethical marketing practices on consumer’s satisfaction through deceptive/misleadingpromotional campaigns range is 2-5 and theMean and StandardDeviation is 4.00 and1.30,respectively.Theresultshowsthattherewasvarietyofopiniononthatvariableandthehighstandarddeviation(1.30)signifiesthatthedataarewidespread;statistically,thehighstandarddeviation implies that unethical marketing practices affect consumers satisfaction throughmisleading advertising (exaggeration by portraying the product in the kind of image that itdoesn’tpossessatall),re-branding(somemarketersdubiouslyremoveatagthatcamewithaparticularproductandreplaceitwithanotherthatisofsuperiorquality),refurbishing(somemarketersrefurbishaproductthatshouldotherwisebediscardedandreplaced),pushysalestactics/high pressure selling (salesperson’s being unnecessarily aggressive by convincingcustomers into buying a product they do not really want) and spam (flooding consumersemails with unsolicited advertisements) believing that they will get more value than theyactuallydo.Finally,thetableshowsthatproliferationofshoddyorunsafeproductsrangefrom1to5andtheMeanandStandardDeviation is3.71and1.26, respectively.The resultshowsthat therewasvarietyofopiniononthatvariableandthehighstandarddeviation(1.26)signifiesthatthedataarewidespread;statistically, thehighstandarddeviation implies that theagreementontheviewsthatunethicalmarketingpracticesaffectNigerianconsumersintheareasoffakeandsubstandard products, poor service to the disadvantaged consumers and planned obsolesce(certain industries cause their products to become obsolete before they actually needreplacement)which endangers the life of Nigerian consumers thatmight result to death orpermanent disabilities.These findings are consistentwith the findingsof Ijewere andObeki(2011)who reported that unethicalmarketing practices do not only cause consumers theirmoneybutalsotheirlivesinseveralcasesinNigeria.ThestudyisalsoinlinewiththefindingsofKotler (2003)who found thatunethicalmarketingpracticesare thekindof activities thatareexploitative,deceptiveanddangeroustohumanhealth.

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PerceptiononWhetherUnethicalConductofNigerianMarketersResulttoEnvironmentalPollutionTable5presentstheperceptiononwhetherUnethicalConductofNigerianMarketersResulttoEnvironmental Pollution. The table reveals that 117 (38.87%) and 133 (44.19%) stronglyagreed and agreed, respectively while, 25 (8.31%) and 05 (1.66%) disagreed and stronglydisagreed respectively, while 21 or 6.98% of the respondents percentwere uncertain. ThisshowsthatmajorityoftherespondentswereoftheopinionthatunethicalconductofNigerianmarketerssignificantlyresulttoenvironmentalpollution.

Table5:PerceptiononwhetherUnethicalConductofNigerianMarketersResultto

EnvironmentalPollution.Valid

Response Frequency Percent X²Value Remark

StronglyAgree 117 38.87

Agree 133 44.19

Uncertain 21 6.98 238.35 Significant

Disagree 25 8.31

StronglyDisagree 05 1.66

Total 301 100.0 Source:ComputedbytheAuthor

Thecalculatedchi-squarevalueof238.35wasfargreaterthanthetablevalueof9.49atdf=4setat0.05levelofsignificance.Thenullhypothesiswastherefore,rejected.TheresultshowsthatunethicalconductofsomeNigerianmarketersleadstoseriousenvironmentalpollutionasaresultofmanagerssociallyirresponsibleactionswhichcauseenvironmentaldegradationofsomebasicneedsinthecourseofmarketingactivitiesthroughairpollution,landpollutionandwater pollution resulting to huge waste of solid, liquid and gaseous substance which isdangeroustohabitant(humanandanimals)andthreatensocietalwell-being.ThisisconsistentwiththeresearchfindingofMuralikrishaandVenkata(2006)whofoundoutthatincreaseinunethicalconductinmarketingresultstoenvironmentaldegradationarisingfromemissionsofhydrocarbons, carbonmonoxide,oxidesofnitrogenandsomeotherair toxinanddangerousliquidsubstanceswhichaffectsthemarketingenvironmentandgeneralsocietalwell-being.PerceptionofHowExcessiveMaterialismarisingfromUnethicalMarketingPracticesResulttoincreasedSocialVicesinNigeria.Table 6 presents the perception on how excessive materialism arising from unethicalmarketing practices result to increased social vices in Nigeria. The table reveals that 113(37.547%)and128(42.53%)stronglyagreedandagreed,respectivelywhile,23(7.64%)and20 (6.64%) disagreed and strongly disagreed respectively, while 17 or 5.65% of therespondentspercentwereuncertain.Thisshowsthatmajorityoftherespondentswereoftheopinion that excessive materialism arising from unethical marketing practices result toincreasedsocialvicesinNigeria.

Ayuba, B. (2019). The Effects of Unethical Marketing Practices on Nigerian Economy and the Quest for National Development. Archives of Business Research, 7(6), 191-211.

URL:http://dx.doi.org/10.14738/abr.76.6716. 204

Table6:PerceptionofHowExcessiveMaterialismarisingfromUnethicalMarketingPracticesResulttoincreasedSocialVicesinNigeria.

Valid

Response Frequency Percent X²Value Remark

StronglyAgree 113 37.54

Agree 128 42.53

Uncertain 17 5.65 203.50 Significant

Disagree 23 7.64

StronglyDisagree 20 6.64

Total 301 100.0 Source:ComputedbytheAuthor

Thecalculatedchi-squarevalueof203.50wasfargreaterthanthetablevalueof9.49atdf=4setat0.05levelofsignificance.Thenullhypothesiswastherefore,rejected.Theresultshowsthatexcessivematerialismarisingfromunethicalmarketingpracticesresulttoincreasedsocialvices such as excessiveness in individual needs for flashy cars, exotic furniture, expensivehomes etc. which results in social vices such as prostitution, armed banditry, advanced feefrauds (419), Cybercrime, bribery and corruption and other economic and financial crimeswhichareretrogressivetonationaldevelopment.ThisisconsistentwiththeresearchfindingsofKotler(2000)andJobber(1998)whofoundoutthatunethicalmarketingpracticesresulttoincreasedsocialvicesduetotheurgeforbetterlivingconditionofindividualsinthesociety.DescriptiveStatisticsonthoseUnethicalMarketingPracticesLeadingtoFaultyImplementationofMarketingMixDecisionsamongNigerianMarketers.Table 7 is descriptive statistics showing the extent of the agreement on those unethicalmarketing practices leading to faulty implementation of marketing mix decisions amongNigerianmarketersusingseveral variablesmeasurement (1-4)namely;product,price,placeand promotion as described by different targeted groups of customers/consumers cuttingacrossthesixgeo-politicalzonesofthecountry.Ascanbeseenfromthetable,allthoseinvestigatedagreedthatunethicalmarketingpracticesresulttofaultyimplementationofmarketingmixdecisionswhicharecriticisedbyrespondentsfor hurting the society due to deceptive, exploitative and its dangerous nature arising fromthose faulty implementation of marketingmix decisions. From the table, the minimum andmaximumvalueforunethicalmarketingpracticesrelatedtotheproductis1to5andtheMeanandStandardDeviationis3.73and1.38,respectively.Theresultshowsthattherewasvarietyofopinionon thatvariableand thehigh standarddeviation (1.38)signifies that thedataarewidespread;statistically, thehighstandarddeviation implies that those faultymarketingmixdecisionsareasaresultofunethicalproductpracticessuchasre-branding, fakeandexpiredgoods,deceptivepackagingandrefurbishingasperpetratedbyirresponsiblemarketerswhichhurtindividualconsumersandthesocietyasawhole.

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Table7:DescriptiveStatisticsonthoseUnethicalMarketingPracticesLeadingtoFaultyImplementationofMarketingMixDecisionsamongNigerianMarketers.

S/N UnethicalMarketingPracticesRelatedtoMarketingMixElements

FaultyImplementationofMarketingMixDecisionsN MinimumMaximum Mean Std.Dev. Decision

1 Product:Re-Branding,FakeandExpiredGoods,DeceptivePackaging,Refurbishing,

301 1.00 5.00 3.73 1.382 Agree

2 Price:DeceptivePricingPractice,PriceCollusion,DiscriminatoryPricing,Over-Billing,

301 1.00 5.00 3.95 1.282 Agree

3 Place/Distribution:Hoarding,Diversion,Products(petrol/kerosene)Adulteration.

301 1.00 5.00 3.71 1.265 Agree

4 Promotion:DeceptivePromotionsuchasMisleadingAdvertising,Lying,Exaggeration,SpamandPushySalesTactics

301 1.00 5.00 4.04 1.327 Agree

ValidN(listwise) 301Source:GeneratedbytheAuthorusingSPSS(Version20)

Unethical marketing practices related to price range between 1 to 5 and the Mean andStandardDeviationof3.95and1.28,respectively.Theresultshowsthat therewasvarietyofopinion on that variable and the high standard deviation (1.28) signifies that the data arewidespread;statistically, thehighstandarddeviation implies that those faultymarketingmixdecisionsareasaresultofunethicalpricingpracticessuchasdeceptivepricingpractice,pricecollusion, discriminatory pricing and over-billing of customers which exploits consumerstherebyleavingthemdissatisfied.Unethicalmarketingpracticesrelatedtoplace/distributionrangebetween1to5andtheMeanandStandardDeviationof3.71and1.26,respectively.Theresultshowsthattherewasvarietyofopinionon thatvariableand thehigh standarddeviation (1.26)signifies that thedataarewidespread;statistically, thehighstandarddeviation implies that those faultymarketingmixdecisionsareasaresultofunethicalpracticesinthemovementofgoodsandservicesfromonelocationtotheother,suchashoarding,diversionandproducts(petrol/kerosene)adulterationwhich result to artificial scarcity of commodities with grave consequences on the Nigerianconsumersandtheeconomyasawhole.Finally,Unethicalmarketingpracticesrelatedtopromotionrangebetween1to5andtheMeanandStandardDeviationof4.04and1.32,respectively.Theresultshowsthattherewasvarietyofopinionon thatvariableand thehigh standarddeviation (1.32)signifies that thedataarewidespread;statistically, thehighstandarddeviation implies that those faultymarketingmixdecisionsareasaresultofunethicalpromotionalcampaignsthataredeceptiveinnature;suchasmisleadingadvertising, lying,exaggeration,spamandpushysales tacticswhich influencedconsumersintobuyingwhattheydon’treallyneedorwant.From these findings, the analysis shows that most of the unethical marketing practices inNigeriaarerelatedtothefourelementsofthemarketingmixwhichwereasaresultoftheget-rich-quick syndromeby irresponsiblemarketingmanagerswhichaffects the implementationof marketing mix strategies and subsequently, the performance of organisations and thecountry’s quest for national economic development. This is consistent with the researchfindings of Kotler and Armstrong (2009)who found out that unethicalmarketing practiceslead to faulty implementation of marketing mix decisions which subsequently affects thesociety.TestofHypothesesIn the testing and analysis of the hypotheses, the statistical test adopted is correlation andregressionanalysisascanbeseeninTable9andTable12.

Ayuba, B. (2019). The Effects of Unethical Marketing Practices on Nigerian Economy and the Quest for National Development. Archives of Business Research, 7(6), 191-211.

URL:http://dx.doi.org/10.14738/abr.76.6716. 206

PearsonCorrelationAnalysisThePearsoncorrelationanalysisobtainedforthescaledvariablesaresummarizedinTable8.The sample size (N) is 301 and the significant level is 0.01 (p = 0.01). Pearson CorrelationCoefficientwas used to determine the extent of the effects ofUnethicalMarketing Practices(UMP)among5variablesofNigeria’seconomicdevelopmentnamely;EconomicGrowth(ECG),CustomerSatisfaction(CS),EnvironmentalPollution(EP)andExcessiveMaterialism(EM)andFaultyImplementationofMarketingMixDecisions(FIM)aspresented.

Table8:PearsonCorrelationCoefficientVariable UMP ECG CS EP EM FIMUMP 1 ECG .611** 1 CS .358** .510** 1 EP .866** .589** .475** 1 EM .786** .520** .431** .826** 1 FIM .727** .510** .391** .719** .681** 1

Significantat0.01***,0.05**and0.1*Source:GeneratedbytheAuthorusingSPSS(Version20)

Theresultsreported inTable8showsthatECG(r= .611,p<0.01) issignificantlyrelatedtounethical marketing practices in the Nigerian society. It means that increase or decreasearising fromECGwillbringaboutacorrespondingchange inUMP.Fromthetable,CS isalsosignificantly related with UMP (r = .358, p< 0.01). A statistical significant impact was alsoestablishedbetweenEPandUMP (r= .866,p<0.01). Similarly, the tableshows thatEMandFIMarealsosignificantlycorrelatedwithUMPat(r= .786,p<0.01)and(r= .727,p<0.01),respectivelysuggestingthatEMandFIMhavesignificantimpactonUMP.It is evident from the results summary as reported in Table 9 that a change in any of thestudiedvariablesnamely;EconomicGrowth(ECG),CustomerSatisfaction(CS),EnvironmentalPollution (EP)andExcessiveMaterialism (EM)andFaulty ImplementationofMarketingMixDecisions (FIM)will lead to a resultant change in the level of unethicalmarketing practiceswhichwill have a consequent influence on both the consumers, the business firms and theeconomyasawholewhichsubsequently,affectsthecountry’squestfornationaldevelopment.RegressionResultWe performed a regression analysis using SPSS to determine the effects of the dependentvariablesontheindependentvariable.TheresultsarepresentedinTables9-11asfollows:

Table9:ModelSummary

Model R RSquareAdjustedRSquare

Std.ErroroftheEstimate

1 .897a .805 .801 .636a.Predictors:(Constant),ECG,CS,EP,EM,FIM

Source:ComputedbytheAuthor

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Table10:ANOVAa

ModelSumofSquares Df MeanSquare F Sig.

1 Regression 491.269 4 122.817 304.757 .000bResidual 119.329 296 .403

Total 610.598 300

a.DependentVariable:UnethicalMarketingPractices(UMP)b.Predictors:(Constant),ECG,CS,EP,EM,FIM

Source:ComputedbytheAuthor

Table11:T-test

ModelUnstandardizedCoefficients

StandardizedCoefficients

T Sig.B Std.Error Beta1 (Constant) .062 .145 .429 .668

ECG .165 .033 .172 5.050 .000CS -.156 .035 -.139 -4.496 .000EP .627 .057 .565 10.963 .000EM .167 .045 .175 3.731 .000FIM .164 .037 .169 4.403 .000

a.DependentVariable:UnethicalMarketingPractices(UMP)Source:ComputedbytheAuthor

The multiple regression model with all five predictors produced R² = .805, F (4, 296) =304.757, p < .001 (see Tables 9 and 10). As can be seen in Table 11, all the variables hadsignificant positive regression weights, indicating that the aforementioned variables wereexpected to have higher impact on unethical marketing practices. In other words, thesevariables considered in the study contributed to themultiple regressionmodel. Specifically,Economic Growth (ECG), Customer Satisfaction (CS), Environmental Pollution (EP) andExcessiveMaterialism(EM)andFaultyImplementationofMarketingMixDecisions(FIM)havesignificantpositiveweight,tvalueandpvalueof(β=.165;t=5.050;p<.001);(β=-.156;t=-4.496;p<.001);(β=.627;t=10.963;p<.001);(β=.167;t=3.731;p<.001)and(β=.164;t=4.403; p< .001), respectively. This indicates that all the variables contribute to themultipleregressionmodel.MajorFindingsThestudyfoundoutthatunethicalmarketingpracticesaffectthecountry’squestfornationaldevelopmentparticularly in theareasof economicgrowthsuchasdecline inGDP, Increasedinflationary activity, decline in patronage and unemployment, as well as bribery andcorruption including poor infrastructure and the lack of innovative entrepreneurship skills.ThestudyfoundoutthatunethicalmarketingpracticesaffectNigeria’sGrossDomesticProductin the areas ofpoor labourutilization and labour inefficiencywhich affects issuesofwealthcreation such as investment opportunities, savings and financialmarket developmentwhichconstituted serious barriers to foreign exchange earnings for increased economic growth.Increase in inflationary activity arising from unethical marketing practices in the foreignexchangemarketsparticularlyactivitiesintheparallelmarketsalso,affectsthenairastrengthanditsstabilityinthemarketplacewhichresultstovolatilityanddeclineinpurchasingpowerof individual buyers that result in consumer dissatisfaction. Also, the economic effects asunravelled in thestudy includedecline inpatronageduetohike inpricesandexploitationof

Ayuba, B. (2019). The Effects of Unethical Marketing Practices on Nigerian Economy and the Quest for National Development. Archives of Business Research, 7(6), 191-211.

URL:http://dx.doi.org/10.14738/abr.76.6716. 208

buyers which result to low income and subsequently, decline in demand which affects thestandardoflivingofNigerians.Others includeunemploymentduetoclosureof factoriesandplants,briberyofcorruptgovernmentofficials,particularlyamongbusinessregulatorybodies,nepotism, unfair treatment and undue favouritism and lop-sidedness in the provision ofinfrastructure(suchasroads,electricitysupply,portabledrinkingwateretc.)bygovernmentand its poor support towards the development of small and medium scale businesses inNigeria,aswellas lackofdevelopmentofinnovativeandentrepreneurialskillswhichaffectsR&Dactivitiesandpatentingofcreativeworks forcommercialization,allaffect thecountry’seconomicgrowth.Othermajorfindingsisthatconsumersarebeinginfluencedtopayforthecostofdistributionand promotion. Prices are inflated by greedy middlemen, mark up the price of productssubstantially beyond the value of their services leading to monetary loss and totaldissatisfactionafterpurchase.Itwasalsofoundoutthatmisleadingadvertising(exaggeration,re-branding,refurbishing,pushysalestactics/highpressuresellingandspamhavesignificanteffectonconsumerssatisfaction.Soalso, theproliferationof fakeandsubstandardproducts,poor service to the disadvantaged consumers and planned obsolesce which was found toendangerthelifeofNigerianconsumersleadingtodeathorpermanentdisabilities.The findingsalso showthat thesocially irresponsibleactionsofNigerianbusinessmanagerscause environmental degradation of some basic needs in the course of marketing activitiesthroughairpollution,landpollutionandwaterpollutionresultingtohugewasteofsolid,liquidand gaseous substancewhich is dangerous to habitant (human and animals) and threatenssocietalwell-being.Furthermore, the result indicates increased social vices such as excessiveness in individualneeds for flashy cars, exotic furniture, expensive homes etc. which results in prostitution,armed banditry, advanced fee frauds (419), Cybercrime, bribery and corruption and othereconomicandfinancialcrimeswhichareretrogressivetonationaldevelopment.Finally,thefindingrevealsthatmostoftheunethicalmarketingpracticesinNigeriaarerelatedto the four elements of the marketing mix which were as a result of the get-rich-quick-syndromebyirresponsiblemarketingmanagers,thisaffectstheimplementationofmarketingmixstrategiesandsubsequently,theperformanceoforganizationsandthecountry’squestfornationaleconomicdevelopment.

CONCLUSIONANDRECOMMENDATIONSConclusionBasedonthevariousfindingsofthisstudy,itisevidentthatUnethicalmarketingpracticesarehavingseriouseffectsonthemarketingsysteminNigeriaassomemarketersinadesperatebidtocompelpotentialandexistingcustomerstobuytheirproductsorservices,makeuseoffalseclaims to influence customers into buyingwhat they don’t want. Some even distort facts tomisleadorconfusepotentialbuyers;theyconcealdarksidesorsideeffectsoftheirproductsorservices,theybadmouthrivalproductsinabidtoturnpotentialcustomerstowardstheirownproducts.Thetrendwassoseriousthatithaseatendeepintothesocietytherebyresultingtosome corrupt practices, ruining the natural environment and encouraging excessivematerialismwhich stalls development and hinders social and economic advancement of thecountry. Sequel to this, the study concludes that marketers should note that they areresponsible formostof theactivitiesnecessarytocreatemorecustomers; theyshouldknowthatcustomersatisfactionshouldbetheultimategoalofanymarketingactivityandthismust

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beachievedthroughenhancingsocietalwell-beingbybeingethicalandsociallyresponsibleintheir exchange relationships by shunning all those practices that are deceptive, exploitativeanddangeroustohumanlife.RecommendationsIn view of meeting the country’s quest for national development, I make the followingrecommendations:

1. Federal government should ensure that business regulatory bodies are alive to theirresponsibilities by ensuring that adequate lawswith stiffer penalties on violations ofmarketing ethics and code of conduct are strengthened to help in combating all theunethicalmarketingpracticesbedevillingtheNigeriansociety.

2. TheChinesemodelofdeathpenaltyfordealingwithcorruptindividualsnomatterhowhighlyplacedtheymaybe,shouldbeadoptedinNigeriaasarecipeforgettingridofallformsofunethicalconductinmarketing.

3. Businessethicsviolationcourtsshouldbesetupbygovernmenttodealwithallcasesofunethicalmarketingpractices facingthevarioussectorsof theNigerianeconomy,asaquickmeasuretodealwiththesituation.

4. Nigerian consumers should be encouraged to boycott harmful and sub-standardproductsorseeklegalredressonanyethicalviolationoftheirrights.

5. Federalgovernmentshouldembarkonmassivesensitizationcampaignofthepubliconthe dangers of unethical marketing practices and its consequences on the overallsocietalwell-being.

6. Pricecontrolboardsshouldberevivednationwideandmeasuresshouldbeputinplaceinmakingsurethattheyfunctionedeffectively.

ContributionstoKnowledgeThisstudyhadmadesomeuniquecontributionstothestudyarea.Firstly,theobservationthattherearenotenoughstudieson theeffectsofunethicalmarketingpracticeson theNigerianeconomyagainstthebackdropofthequestfornationaldevelopmentwhichthisstudyaddedtothe body of knowledge. Secondly, the study identified those specific unethical marketingpracticesaffectingNigerianeconomyandthoserelatedtothemarketingmixelementswhichcanbetackledbygovernmentinmeetingthecountry’squestfornationaldevelopment.Finally,thestudyencouragesmoralmarketingforasaferandbetterNigeriansociety.SuggestionsforFurtherStudiesFollowing the contributions of marketing to the society, there are still arguments by itsproponentsonwhethermarketingisethicalorunethical,researchersarehoweverchallengedtocontinuetoinvestigatethefieldwithaviewtofindingalastingsolution.Furthermore,studyof similarnature shouldbe conductedby researchers to investigate theunethicalmarketingpracticesassociatedwithprocurementprocessesinMinistries,Departments,Agencies(MDA’s)and Commissions so as to examine its effects on the Nigerian economy. These clearly areanotherinterestingareasforfutureresearch.ReferencesAhluwalia,R.,R.E.BurnkrantandH.R.Unnava(2000).ConsumerResponsetoNegativePublicity:TheModeratingRoleofCommitment,JournalofMarketingResearch37,203–214.

AikateriniVassilikopoulou,GeorgeSiomkos,ChryssoulaRouvaki(2008).TheEthicalandUnethicalDimensionsofMarketing.ManagementReview:AnInternationalJournalVol.3,No.2.

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Anderson,EW,Fornell,C&Mazvancheryl,SK(2004).CustomerSatisfactionandShareholderValue‟,JournalofMarketing,Vol.68,pg;172–185.

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