Studying Children’s Friendships in Bigelow and La Gaipa: Comparison

In this essay you will read about the many similarities and differences of the study and research of children’s friendships expectations, which were approached by Bigelow and La Gaipa (1975) and William Corsaro (2006). Firstly I will introduce both of the different approaches and methods and I will then later go into the results of their work. I will later go on to talk about the problems with some of the methods and what could have been changed to solve these and lastly the similarities and differences between them both. Bigelow and La Gaipa in 1975 approached a study on children’s friendships; they started the study in the 1970 when very little was known on children’s friendship and the aspects of ‘friendships’. Their main studies was to look at the differences in children’s understanding of friendship at various stages of development and how the children’s interpretation of friendship changes as they get older. In the Experiment itself they asked thirty girls and thirty boys from eight different schools, between the ages of six and fourteen to think about their best friend of the same sex. They were then told to write an essay on what they expected of their best friend and how it differs from expectations of other friends. Bigelow and La Gaipa sampled a study of four hundred and eighty essays. Before the study and research took place Bigelow and La Gaipa wrote a list of different characteristics of a best friend of which they believed the children may include in their essays, they created a list of twenty one difference categories of friendship expectations. For the results of this method they took all four hundred and eighty essays and compared them against their list of twenty one categories of friendship expectations, this was to count how many times each expectation was mentioned, this is usually referred to as a frequency count. Once they counted each expectation and the occurrences had been noted they could use the frequency count to look for patterns that could give them an insight into children’s friendships expectations and the changing nature of it. Bigelow and La Gaipa found some differences in the expectations of a best friend in different ages and how gender differs too. Sixteen of the twenty one categories were noted more frequent in the elder children’s essays compared to the younger, it is said that ‘’expectations of a best friend become increasingly complex and sophisticated as children get older’’. Bigelow and La Gaipa all came up with three different stages of development of children’s expectations in friendship: First stage- is based on shared activities, so when you’re a lot younger and your parents take you for meetings with other children to start the development of friendships. Second stage – this change is different from the first stage as the friendships are more emphasized on sharing, loyalty and commitment. Third stage – this stage is based more on growing up and the importance of similarity in attitudes, values and the potential of a more intimate friendship The problem with Bigelow and La Gaipa’s approach was that younger children lack the use of skills and higher education such as verbal and writing skills, older children may be a lot better with words and may be more descriptive, whereas the younger children will keep there’s more simple and basic. Another problem with their approach was that Bigelow and La Gaipa created the list themselves of the friendship expectations, this could be seen as unfair because what they wrote down could be their own expectations and not a varied supply of words for everyone’s views on friendship expectations. To change this they could have asked another variety of people on their first thoughts on what is a best friend and used a mixed variety of ideas. William Corsaro was more interested in how children spoke to each other and that research on children’s friendships should focus more on their understanding of the word. William Corsaro wanted to explore more into how friendship changes and is meant in different places and different times, he wanted to look more into the communication of children with each other rather than have an interviewer. He made notes on the different activities of children and their interactions with each other, whilst video recording them, this is an example of an ethnographic approach. An ethnographic approach can be seen as better when it used with younger children which may not be good with words like elder children, also this way he could get a first-hand account of the Childs experiences. Corsaro had to find a way of blending in with the social groups without seeming inconspicuous, he believed that a way which has worked well in the past is observing and watching from a distant and waiting to be approached by children, for them to then invite you into the social group. He firstly observed a group of children of the age of three years old playing in a box and discovered in order to gain access to be invited to play together you need to already be friends or become friends. He then observed to three year old girls, Jenny and Betty and discovered that they became concerned about one another when one disappeared to play with someone else, Betty also reassures Jenny that they are still best friends. William Corsaro’s last observation slightly contradicts Bigelow and La Gaipa’s idea of showing concern of each other comes as you get older, whereas Corsaro comes across the two girls whom at the age of three become concerned for one another. This may be due to the different approaches they both took in their research, Corsaro’s approach was more about translating the children’s words whereas Bigelow and La Gaipa’s at the end came down to translating the children’s essays into numbers. They both started off by using more qualitative data but later Bigelow and La Gaipa altered theirs to quantitative. The problems with Corsaro’s approach is that he didn’t vary his ideas enough and kept them to a small, minimum age range and didn’t vary the different situations, although his idea was to see the understanding of children’s idea on ‘friends’, if he had mixed situations and ages Corsaro may have had a very different result to what he got. I think it would have made his experiment more interesting if he had varied genders and the amount of children and also seen how boy and girl friends interact with one another. By looking at both studies there is an obvious similarity and this is that they both were interested in the research and study of children's friendships. Another similarity in both these approaches of children’s friendship is that the children had free will to do or write what they wanted, Bigelow and La Gaipa just told them to write what they looked for in a best friend and William Corsaro allowed the children to play where they wanted and allowed them to introduce him into their social group rather than approaching it himself which may have altered the results for his study. From my point of view there are a lot more differences comparing both the approaches, to start with although they were both looking into children’s friendships, William Corsaro was more interested in the children’s individual understanding of the word ‘friend’ and how place and time affect this, in contrast Bigelow and La Gaipa wanted to know a range of ideas of what children expect of their ‘best friend’. They also used different methods Corsaro used an ethnographic approach unlike Bigelow and La Gaipa which used a written quantitative research method. To conclude this essay I believe that the differences overrule over similarities with Bigelow and La Gaipa’s compared to William Corsaro’s approach. They both make valid points in their methods, studies and especially their results, but both results contradict one another, by one saying as you get older friendships become more complex and you become more concerned for friends, where on the other hand the other goes on to show that from a young age of three a couple of young girls show concern for each other, which opens the question of every child differs from each other. Bigelow and La Gaipa had a good idea of method by sampling a wide number and varied the ages and areas the children were from, whereas William Corsaro only observed a small amount of children which doesn’t open his sampling studies as he was then restricted to what he had. I believe that William Corsaro had the better method overall though by actually observing how children interact and by seeing it all himself from his own eyes, children’s views on each other can differ all the time, even days when they’re a lot younger.

The Ethics of Food Advertising Targeted Toward Children: Parental Viewpoint

O Springer 2009 Journal of Business Ethics (2010) 91:299–311 DOI 10. 1007/s10551-009-0084-2 The Ethics of Food Advertising Targeted Toward Children: Parental Viewpoint ABSTRACT. The children’s market has become significantly more important to marketers in recent years. They have been spending increasing amounts on advertising, particularly of food and beverages, to reach this segment. At the same time, there is a critical debate among parents, government agencies, and industry experts as to the ethics of food advertising practices aimed toward children. The present study examines parents’ ethical views of food advertising targeting children.Findings indicate that parents’ beliefs concerning at least some dimensions of moral intensity are significantly related to their ethical judgments and behavioral intentions of food advertising targeting children as well as the perceived moral intensity of the situation. KEY WORDS: parents, children, ethics, food advert ising The children’s market has become signi? cantly important to marketers (McNeal, 1998). Many marketers spend millions of dollars on advertising to reach this growing segment (Jardine and Wentz, 2005). More speci? cally, food and beverage companies in the USA spend an estimated US $10–12 billion targeting hildren and adolescents (McKay, 2005). According to the Kaiser Family Foundation, children are exposed to more than 7,600 commercials on candy, cereal, and fast food in any given year (Kotz, 2007). The effects of advertising on children have been highly debated among various groups, including parents, researchers, industry experts, and government agencies. One of the primary debates has been the potential impact of food advertising directed at children. A variety of institutions are involved in this debate. Some of these organizations such as public advocacy groups criticize the food companies and elevision networks concerning the increased amounts spent as well as the types of promotional efforts targeted Aysen Bakir Scott J. Vitell at children (York, 2007). Furthermore, statistics provide substantial concern about obesity, showing that approximately 50% of elementary-school children and 80% of teenagers will battle obesity during their lifetime. There is also debate among practitioners on advertising practices directed at children, with even marketing professionals indicating concern about advertising targeted at children. When interviewed, 35% of them consider the general ethical and moral tandards in the industry to be ‘‘lower than in the past,’’ with 40% believing that these standards are about the same (Grimm, 2004). Thus, only 25% believe the standards are improved. Some companies have already started taking actions to deal with criticisms and even with government warning. In Europe, soft-drink companies have developed self-regulatory measures to stop advertising junk food and to help tackle child obesity. To avoid stricter laws, soft-drink companies have pledged to stop marketing towards children under 12 years old. The companies also have pledged to limit soft-drink sales at schools (Wentz, 005). Other countries in Europe, however, have been taking an even stricter stance on regulations; for example, starting in 2005, Ireland introduced a ban on celebrities who appear in food and beverages targeted at children (Jardine and Wentz, 2004). Furthermore, some companies have also responded to government calls by promoting active lifestyles when targeting children in food ads. McDonald’s, in the UK, ran a campaign that featured Ronald McDonald and used animated fruit and vegetable characters which were called Yums. These characters urged children to eat right and stay active (Jardine and Wentz, 2004).Given all these statistics showing the potential impact of food advertising targeting children, parents 300 Aysen Bakir and Scott J. Vitell are concerned over whether or not marketers have been conducting ethical practices in promoting their products. However, this issue has not received signi? cant attention in the marketing literature. This paper attempts to ? ll this apparent gap by examining parents’ ethical views of food advertising targeted at children. In doing so, it also examines the potential impact of parents’ attitudes toward food advertising and toward the use of nutrition information on their thical judgments and behavioral intentions. Marketing ethics and advertising to children Advertising to children has long been one of the most controversial areas of marketing. The debate ranges from whether or not it is even ethical to advertise to children and includes the types of advertising practices that might be considered ethical. At the center of this debate is food advertising targeted at children. The impact of advertising to children has been shown in previous studies (Goldberg and Gorn, 1974; Gorn and Goldberg, 1977). Findings include the fact that low-income children exposed to a commercial just nce had favorable attitudes towards the advertised product (Gorn and Goldberg, 1977). Furthermore, these authors found that exposure to television ads among 5- and 6-year-old children directly in? uenced breakfast food and snack preferences (Goldberg et al. , 1978). Finally, exposure to advertisements has also been shown to in? uence the frequency of snacking among children (Bolton, 1983). Advertising has been criticized for promoting materialism, persuading individuals to buy things they do not need, and providing false or misleading information (Pollay and Mittal, 1993). Parents’ concerns toward the impact of advertising directed at hildren have risen signi? cantly in the last decade (Hudson et al. , 2008). These concerns have also been expressed by academicians (Moore, 2004). However, only a limited number of studies have examined ethical issues aimed at the children’s segment (Ahuja et al. , 2001; Hudson e t al. , 2008). Despite these increased concerns and the ensuing debate, parents’ ethical views of food advertising targeting children have not been examined in the marketing literature. Ethical judgments and behavioral intentions Understanding how parents view and make decisions about ethical issues targeted at children is important to marketers.Several factors might in? uence ethical decision-making, including situational factors (Hunt and Vitell, 1986) and individual differences (Hunt and Vitellm, 1986; Jones, 1991). Ethical (or unethical) behavior is in? uenced directly by the ethical judgments and behavioral intentions of the individuals. An individual’s ethical judgment is de? ned as ‘‘the degree to which he or she considers a particular behavior morally acceptable’’ (Bass et al. , 1999, p. 189). Ethical judgments have been considered a central construct in several ethical decisionmaking models (Dubinsky and Loken, 1989; Hunt and Vitell, 1986; Jones, 1991).These decision-making theories provide an understanding of how an individual’s behavioral intentions and ethical judgments are relevant to making decisions in situations involving ethical issues; for example, the theory of reasoned action suggests that individuals act in a manner consistent with their attitudes. On the other hand, other factors might cause individuals to develop behavioral intentions that might be inconsistent with their attitudes (Fishbein and Ajzen, 1975). Past research has also shown that individuals are more likely to state their behavioral intentions if they perceive the situation as ethical (Bass et al. , 1999).Furthermore, Hunt and Vitell (1986, p. 9) de? ned behavioral intentions as ‘‘the likelihood that any particular alternative will be chosen. ’’ The authors also suggest that ethical judgments would impact the individual behavior through behavioral intentions. Overall, ethical judgments and behavioral in tentions are important constructs to gain insights regarding advertising directed at children. Attitude toward food advertising As noted, research examining parents’ attitudes toward advertising, particularly to food advertising, directed at children is limited. Past studies examined the relationship between family communication atterns and parental reactions toward advertising (Rose et al. , 1998), and parental involvement The Ethics of Food Advertising Targeted Toward Children and authoritative parenting and attitude toward advertising (Carlson and Grossbart, 1988). Only one study examined the relationship between attitude toward food advertising and parental styles (Crosby and Grossbart, 1984). The authors found differences regarding attitudes toward food advertising based upon parental styles, with more authoritative parents being more concerned about children’s food advertising as compared with more permissive parents.Governments and health advocates in different countries are trying to introduce stricter regulations on food advertising targeting children since they blame marketers for increased levels of childhood obesity. In France, food marketers are faced with choosing between paying a 1. 5% tax on their ad budgets to fund healthy-eating messages or else adding a health message to commercials. In Canada, one-third of children between 2 and 11 years old are overweight and some marketers are promoting healthy lifestyles for children. Given the different proportions of childhood obesity problems from ne county to the next, multinational food marketers such as McDonald’s now have differing strategies in each country based on how they must undertake this global challenge (Jardine and Wentz, 2005). Clearly, advertisers have been questioned about their ethical standards. Although there is increased discussion among parents regarding the potential impact of advertising and concern about how ethical (or unethical) advertising practices are towards children, this issue has not been adequately researched. Since the relationship between parents’ attitude toward food advertising and ethical judgments and behavioral intentions f the advertising tactics targeted at children has not been examined in the marketing literature, this study focuses on those parental perspectives. Therefore, based upon the previous discussion, it is hypothesized that: Parents’ attitude toward food advertising will be positively related to their ethical judgments of the food advertising targeted at children. H2: Parents’ attitude toward food advertising will be positively related to their behavioral intentions of the food advertising targeted at children. H1: 301 Attitude toward use of nutrition information Concerns about children’s nutrition include multiple actors. Some of these concerns are centered on nutrition de? ciencies in children’s diets due to economic factors, poor eating habits, and inadequate nutrit ional knowledge of parents. The government has taken several steps to deal with children’s nutrition problems by being involved in school lunch programs, regulation of children’s advertising, and nutrition education in schools (Crosby et al. , 1982). Research has also shown the positive impact of parental in? uence and nutrition education (Grossbart et al. , 1982). Parents’ attitudes toward the use of nutrition vary from one parent to the other.Furthermore, parents, particularly mothers, wield a signi? cant impact on children’s consumption of a balanced diet and exposure to a variety of foods. Previous research has shown that mothers who endorsed nutrition information had more positive attitudes toward nutrition and expressed more concerns about food advertising targeted at children (Crosby et al. , 1982). Therefore, it is further hypothesized that: Parents’ attitude toward the use of nutrition information will be positively related to their ethica l judgments of the food advertising targeted at children. H4: Parents’ attitude toward the use of nutrition nformation will be positively related to their behavioral intentions of the food advertising targeted at children. H3: Moral intensity Jones (1991) de? nes moral intensity as ‘‘the extent of issue-related moral imperative in a situation’’ (p. 372). Furthermore, he suggests that ethics-related contexts vary with their level of moral intensity. Jones (1991) identi? ed six categories (magnitude of consequences, probability of effect, temporal immediacy, concentration of effect, proximity, and social consensus) of the moral intensity construct. The ? rst four items refer to the various dimensions of harm the action might cause.More speci? cally, magnitude of consequences refers to the cumulative 302 Aysen Bakir and Scott J. Vitell harm (or lack thereof) the action might cause. Probability of effect refers to the likelihood that the action will caus e harm (or lack thereof). Temporal immediacy refers to ‘‘the length of time between the present and the onset of consequences of the moral act in question (shorter length of time implies greater immediacy)’’ (Jones, 1991, p. 376). The concentration of effect refers to the number of people who would believe that the action would cause harm (or lack thereof). Proximity is the ‘‘feeling of nearness social, cultural, psychological, or physical)’’ (Jones, 1991, p. 376) that the individual has for those affected by the action in question. Finally, social consensus is the extent of the feeling that action taken is good (or not). Moral intensity is a multidimensional construct that measures the moral intensity of the situation. Ethical decision-making process must be in? uenced by the perception that the potential action has a moral or ethical facet that needs to be evaluated (Barnett, 2001). For marketing practitioners, studies have shown that perceived moral intensity affects the perception of ethical problems in various situations Singhapakdi et al. , 1996a; Singhapakdi et al. , 1999). Furthermore, past studies also have shown that moral intensity in? uences behavioral intentions of the individuals in ethics-related situations (Robin et al. , 1996; Singhapakdi et al. , 1996a). Also, Hunt and Vitell (1986) suggest a theoretical link between intentions and ethical judgments. Therefore, moral intensity would also be expected to in? uence ethical judgments. The relationship between moral intensity and ethical judgments and behavioral intentions has also been empirically shown (Barnett, 2001; Vitell et al. , 2003). Thus, it is hypothesized that:Parents’ attitude toward moral intensity will be positively related to their ethical judgments of the food advertising targeted at children. H6: Parents’ attitude toward moral intensity will be positively related to their behavioral intentions of the food advertisi ng targeted at children. H5: contexts (e. g. , Singhapakdi et al. , 1996c; Singhapakdi et al. , 1999). Forsyth (1980) suggests that idealism and relativism can be considered as individual differences that might impact individuals’ judgments of moral issues. Idealism measures an individual’s acceptance of universal moral absolutes. This construct focuses on the assumption that, if ight actions are taken, this will lead to desired outcomes. On the other hand, relativism measures individual’s rejection of universal moral tenets (Forsyth, 1980). Therefore, the conceptualization of these constructs might suggest that individuals who are more idealistic would be more likely to have higher ethical judgments and behavioral intentions. Previous research provides some support for these relationships (Singhapakdi et al. , 1996c). Relativism is de? ned as a belief that moral standards are relative to one’s culture or society. Forsyth (1992) also indicates that relati vistic individuals might ormulate their decisions based on skepticism and evaluate situations based on other than ethical principles. Furthermore, relativistic individuals evaluate what is right or wrong based on the speci? cs of the situation (Park, 2005). Forsyth (1992) also indicates that idealism and relativism are not contrary concepts, but rather independent of each other; for example, an individual might have high scores both on idealism and relativism, which indicates that the person might simultaneously accept absolute moral rules and yet also evaluate the alternatives available based upon the speci? c situation and its possible onsequences. Therefore, parents would evaluate each of the advertising tactics directed at their children on a situation-by-situation basis. Since food advertising directed at children has received signi? cant attention recently due to the health concerns of children and increased obesity rates (York, 2007), speci? c types of advertising tactics suc h as potentially developing unhealthy eating habits might be received more negatively due to their apparent impact on children. Therefore, it is hypothesized that: Parents’ idealism will be related to their ethical judgments of the food advertising targeted at hildren. H8: Parents’ idealism will be related to their behavioral intentions of the food advertising targeted at children. H7: Idealism and relativism Idealism and relativism have been used to measure moral philosophies in various marketing-related The Ethics of Food Advertising Targeted Toward Children Parents’ relativism will ethical judgments of the geted at children. H10: Parents’ relativism will behavioral intentions of targeted at children. H9: be related to their food advertising tarbe related to their the food advertising Method Sample The survey was sent to parents at several schools ocated in the Midwest. The researchers contacted the schools and got permission to send the survey to paren ts at the schools that agreed to participate in the study. The number of schools that participated in the study provided signi? cant diversity in terms of economic background. The majority of the sample included educated and employed middle-income families. Of the 1,020 surveys sent, 189 surveys were completed, for a response rate of 18. 52%. Of the 189 surveys, 28 surveys had missing data for individual questions. Among the respondents, 78% were mothers and the rest of were fathers. Table I isplays the complete demographics of the respondents. Procedure Once the school principals gave permission, the researchers contacted the teachers from kindergarten to eighth grade. The teachers in each grade sent the questionnaires home to parents with the children. Once the parents ? lled out the questionnaires, the children returned the completed questionnaire to the schools. Measures and reliability The dependent variables were behavioral intentions and ethical judgments. The independent var iables were moral intensity, idealism, relativism, attitude toward food advertising aimed at children, and ttitude toward the parents’ use of nutrition information. 303 TABLE I Demographics of the respondents Variable Parent Mother Father Age of the parent 29 years old or under 30–39 years old 40–49 years old 50–59 years old Education level of the parent High-school degree Some college degree College graduate Some graduate study Graduate degree Household income (US $) 100k Work status of the parent Working full time Working part time Not working No. of children One child Two children Three children Four children More than four children % 78. 1 21. 9 4. 8 48. 9 39. 8 6. 5 5. 4 19. 4 38. 7 5. 4 31. 2 12. 2 14. 5 26. 6 3. 9 22. 8 67. 9 17. 1 15 18. 7 42. 2 27. 3 7. 5 4. 3 Moral intensity This scale measures parents’ attitude toward moral intensity in a given situation. This construct was developed by Jones (1991) and includes six dimensions. However, the scale used to measure the construct was developed by Singhapakdi et al. (1996b). Responses were measured by a seven-point Likert-type scale, ranging from 1 (strongly disagree) to 7 (strongly agree). The harm dimension included three variables: magnitude of consequences, temporal immediacy, and concentration of effect. The other two items were proximity and social consensus.The reliability of the harm scale was 0. 85 for the 304 Aysen Bakir and Scott J. Vitell ?rst scenario, 0. 91 for the second scenario, and 0. 86 for the third scenario. Idealism and relativism This scale measures the extent of individual’s acceptance of moral absolutes, whereas the relativism scale measures the extent of individual’s rejection of universal moral principles. The two scales were developed by Forsyth (1980). The ten items for each scale were measured utilizing a seven-point Likerttype scales, ranging from 1 (strongly disagree) to 7 (strongly agree). The reliability of the scale was 0 . 83 or idealism and 0. 84 for relativism. Attitude toward food advertising This scale measures parents’ attitudes toward food advertising directed at children. The scale is adapted from a Carlson and Grossbart (1988) study and includes six items. The parents’ extent of agreement was measured by a ? ve-point Likert-type scale, ranging from 1 (strongly disagree) to 5 (strongly agree). The reliability of the scale was 0. 80. Attitude toward use of nutritional information This scale measures parents’ use of nutritional information. The scale was originally developed by Moorman (1998) and includes four items.The parents’ extent of agreement toward the use of nutritional information were measured by a ? ve-point Likert-type scale, ranging from 1 (strongly disagree) to 5 (strongly agree). The reliability of the scale was 0. 82. Scenarios This study utilized three scenarios to measure parents’ behavioral intentions and ethical judgments relative to speci? c situations. Ethical judgments and behavioral intentions were then measured by using a seven-point Likert scale asking the respondents the extent they agree/disagree with the questions. For measuring ethical judgments, the following statement was used, ‘‘I consider the action taken to e very ethical,’’ whereas for measuring behavioral intentions, the following statement was used, ‘‘I would be likely to take the same action in this situation. ’’ Therefore, a greater degree of agreement with the action taken indicates that the respondents had higher ethical levels of behavioral intentions and ethical judgments. At the end of each scenario, the action taken by an advertiser was presented. The scenarios focused on addressing some of the current advertising practices used to target children. The ? rst scenario addresses the use of ‘‘advergames’’ targeting children. Children are playing these games n the Inter net in a branded context. The games provide product-related information and even ask children to contact their friends. The second scenario focused on some of the highly debated advertising practices at schools. A food company sponsors programs at schools and child care centers. During visits, the company provides entertainment with well-known characters and exposes children to samples of their potentially unhealthy food products. The third scenario centers on a candy and cereal company who is considering selling books that spotlight the client’s brand. Children can play and learn counting by using sugar-? led sweets and cereals. The books use the company’s brand as an example in their plays and counting. The scenarios were pretested. The results indicated that most respondents believed that the actions taken by the advertisers in all of the scenarios were unethical. The majority of the respondents also indicated that they disagreed with the actions taken in the three scenarios. Data analysis and results The hypotheses were tested separately for each of the three scenarios. Analysis of variance (ANOVA) was used to test the hypotheses. H1 measured whether parents’ attitude toward food advertising is ositively related to their ethical judgments of the food advertising targeted at children. The three scenarios tested did not indicate signi? cant differences. The ANOVA results were: scenario 1: F(7, 152) = 26. 836, p < 0. 926; scenario 2: F(7, 158) = 11. 334, p < 0. 933; and scenario 3: F(7, 160) = 21. 468, p < 0. 724. Thus, parents’ attitude toward food advertising was not related to their ethical judgments of the food advertising targeted at children. H2 measured whether parents’ attitude toward food advertising is positively related to their behavioral intentions of the food advertising targeted at children.Again, none of the three scenarios resulted in signi? cant differences. The Ethics of Food Advertising Targeted Toward Ch ildren 305 TABLE II ANOVA analysis: scenarios 1, 2, and 3, dependent variable: ethical judgments Variable Moral intensity: Moral intensity: Moral intensity: Idealism Relativism Attitude toward Attitude toward Scenario 1 p Value harm consensus proximity food advertising use of nutrition Scenario 2 p Value Scenario 3 p Value 0. 000 0. 095 0. 288 0. 206 0. 200 0. 926 0. 093 F(7, 152) = 26. 835 0. 000 0. 037 0. 772 0. 166 0. 006 0. 933 0. 822 F(7, 158) = 11. 334 0. 000 0. 000 0. 255 0. 633 0. 60 0. 724 0. 127 F(7, 160) = 21. 468 TABLE III ANOVA analysis: scenarios 1, 2, and 3, dependent variable: behavioral intentions Variable Moral intensity: Moral intensity: Moral intensity: Idealism Relativism Attitude toward Attitude toward Scenario 1 p Value harm consensus proximity food advertising use of nutrition Scenario 2 p Value Scenario 3 p Value 0. 000 0. 000 0. 091 0. 732 0. 162 0. 854 0. 223 F(7, 153) = 18. 707 0. 000 0. 002 0. 539 0. 186 0. 036 0. 643 0. 116 F(7, 157) = 17. 721 0. 000 0. 005 0. 809 0. 567 0. 081 0. 554 0. 004 F(7, 160) = 16. 315 The ANOVA results were: scenario 1: F(7, 153) = 8. 707, p < 0. 854; scenario 2: F(7, 157) = 17. 721, p < 0. 643; and scenario 3: F(7, 160) = 16. 315, p < 0. 554. Thus parents’ attitude toward food advertising was not related to their behavioral intentions relative to the food advertising targeted at children. Tables II and III display these ? ndings. H3 measured whether parents’ attitude toward the use of nutrition information is positively related to their ethical judgments of the food advertising targeted at children. The three scenarios tested did not indicate signi? cant differences. The ANOVA results were: scenario 1: F(7, 152) = 26. 35, p < 0. 093; scenario 2: F(7, 158) = 11. 334, p < 0. 822; and scenario 3: F(7, 160) = 21. 468, p < 0. 127. H4 measured whether parents’ attitude toward the use of nutrition information is positively related to their behavioral intentions relative to the food adverti sing targeted at children. There were no signi? cant differences regarding the ? rst two scenarios, but there were signi? cant differences on the third scenario among parents’ attitude toward the use of nutrition information and its relation to their behavioral intentions of the food advertising targeted at children. The ANOVA esults were: scenario 1: F(7, 153) = 18. 707, p < 0. 223; scenario 2: F(7, 157) = 17. 721, p < 0. 116; and scenario 3: F(7, 160) = 16. 315, p < 0. 004. H5 measured whether parents’ attitude concerning moral intensity is positively related to their ethical judgments of the food advertising targeted at children. Moral intensity was measured by three separate dimensions: harm, social consensus, and proximity. There were signi? cant differences on the harm construct among three scenarios. The ANOVA results were: scenario 1: F(7, 152) = 26. 836, p < 0. 000; scenario 2: F(7, 158) = 11. 334, p < 0. 000; 306Aysen Bakir and Scott J. Vitell and scenario 3: F(7, 160) = 21. 468, p < 0. 000. Furthermore, there were signi? cant differences on the social consensus construct for the second and third scenarios. The ANOVA results were: scenario 1: F(7, 152) = 26. 836, p < 0. 095; scenario 2: F(7, 158) = 11. 334, p < 0. 037; and scenario 3: F(7, 160) = 21. 468, p < 0. 000. Finally, there were no signi? cant differences on proximity among three scenarios. The ANOVA results were: scenario 1: F(7, 152) = 26. 836, p < 0. 288; scenario 2: F(7, 158) = 11. 334, p < 0. 772; and scenario 3: F(7, 160) = 21. 468, p < 0. 55. Thus, overall H5 was at least partially supported. H6 measured whether parents’ attitude concerning moral intensity is positively related to their behavioral intentions relative to the food advertising targeted at children. Parents’ attitude toward the harm and social consensus dimensions indicated signi? cant differences among three scenarios. The ANOVA results for harm were: scenario 1: F(7, 153) = 18. 707, p < 0. 000 ; scenario 2: F(7, 157) = 17. 721, p < 0. 000; and scenario 3: F(7, 160) = 16. 315, p < 0. 000. The ANOVA results for social consensus were: scenario 1: F(7, 153) = 18. 707, p < 0. 00; scenario 2: F(7, 157) = 17. 721, p < 0. 002; and scenario 3: F(7, 160) = 16. 315, p < 0. 005. On the other hand, parents’ attitude toward proximity did not indicate any signi? cant differences among three scenarios. The ANOVA results for proximity were: scenario 1: F(7, 153) = 18. 707, p < 0. 091; scenario 2: F(7, 157) = 17. 721, p < 0. 539; and scenario 3: F(7, 160) = 16. 315, p < 0. 809. H7 measured whether parents’ idealistic moral philosophy is related to their ethical judgments of the food advertising targeted at children. Parents’ idealism was not signi? cantly related to their ethical udgments. The ANOVA results for idealism were: scenario 1: F(7, 152) = 26. 835, p < 0. 206; scenario 2: F(7, 158) = 11. 334, p < 0. 166; and scenario 3: F(7, 160) = 21. 468, p < 0. 633. H8 mea sured whether parents’ idealistic moral philosophy is related to their behavioral intentions of the food advertising targeted at children. Again the results were not signi? cant. The ANOVA results for idealism were: scenario 1: F(7, 153) = 18. 707, p < 0. 732; scenario 2: F(7, 157) = 17. 721, p < 0. 186; and scenario 3: F(7, 160) = 16. 315, p < 0. 567. H9 measured whether parents’ relativistic moral hilosophy is related to their ethical judgments of the food advertising targeted at children. H10 mea- sured whether parents’ relativistic moral philosophy is related to their behavioral intentions of the food advertising targeted at children. H9 and H10 were partially supported. Parents’ relativism was signi? cantly related to ethical judgments and intentions for the second scenario. The ANOVA results for idealism were: scenario 1: F(7, 152) = 26. 835, p < 0. 200; scenario 2: F(7, 158) = 11. 334, p < 0. 006; and scenario 3: F(7, 160) = 21. 468, p < 0. 060. Th ere were no signi? ant differences among parents’ relativism regarding the behavioral intentions for the ? rst and the third scenarios. The ANOVA results for relativism were: scenario 1: F(7, 153) = 18. 707, p < 0. 7162; scenario 2: F(7, 157) = 17. 721, p < 0. 036; and scenario 3: F(7, 160) = 16. 315, p < 0. 081. Discussion This paper examined parents’ views of the ethics of food advertising targeted at children. The marketing literature, surprisingly, has not examined this topic. This study attempts to ? ll this gap by examining how parents view various types of food advertising directed at children. Children as consumers have ecome signi? cantly more important to marketers in the last decade. Marketers have heavily promoted their products to this segment and spent millions of dollars on advertising to reach this segment (Jardine and Wentz, 2005). Food advertising represents a signi? cant portion of all advertising spending for marketers while food advertising targete d at children has received signi? cant criticism from both parents and public policy-makers. The ? ndings of the study provide interesting insights. Parents were asked to respond to three different scenarios outlining various food advertising strategies directed at children.Furthermore, parents’ ethical judgments and behavioral intentions were measured for the three scenarios. One of the independent variables was parents’ attitude toward food advertising. The ? ndings indicated that parents’ attitude toward food advertising did not affect their ethical judgments and behavioral intentions concerning speci? c food advertising directed at their children. One of the reasons for not ? nding a signi? cant relationship might be due to the measurement of other food advertising practices targeted at children in the scenarios that was not included in the The Ethics of Food Advertising Targeted Toward Children cale measuring attitudes toward food advertising. This ? nding provides important implications for marketers which might indicate that parents evaluate speci? c food advertising targeted at children independently of their potential views on general food advertising directed at children. Thus, marketers who are cognizant of the potential harm of advertising to children might still be highly regarded by consumers even if the consumer, in general, has negative or skeptical views of advertising to children. Parents’ attitude toward the use of nutrition information displayed interesting ? ndings.The third scenario, in particular, focused on speci? c implications of a food product that might have unhealthy eating implications for children. Parents’ attitude toward the use of nutritional information for this scenario was related to their behavioral intentions. On the other hand, there were no signi? cant relationships between an attitude toward the use of nutrition and ethical judgments of food advertising targeted at children for any of the scenarios, including scenario 3. Parents might have not perceived using well-known characters to distribute food company products at schools and child care acilities to have any potential harm. The lack of a relationship between an attitude toward the use of nutritional information and ethical judgments of food advertising targeted at children should be considered on a scenario-by-scenario basis; for example, for the ? rst scenario, it might be that parents did not really think the advergames and the use of well-known characters to distribute food company products at schools and child care facilities presented any potential unethical practices. Particularly, advergames are new promotional tools used on the Web to attract adults and children within a branded context.Advergames are somewhere between advertising and computer games and include product-related information from the companies with the use of games or part of a game (Nelson, 2002; Mallinckrodt and Mizerski, 2007). Past studies also suggest that advergames might be more persuasive for young children than traditional advertising (Oanh Ha, 2004). Parental awareness of advergames targeting children needs further investigation in future research. Future research should also examine how parents use nutritional information in their food purchase decisions to have a better understanding of the relationship between attitude 307 oward use of nutrition information and ethical perspectives regarding food advertising. Moral intensity signi? cantly affected parents’ ethical judgments and behavioral intentions. This ?nding offers signi? cant implications for marketers and public policy-makers. Parents indicated concerns regarding the potential harm of various food advertising targeting children in the three scenarios. It is important that marketers should be more careful when they create their advertising tactics targeting children. It might also be that more regulations might be needed to address parent al concerns regarding the potential effects of food dvertising. The moral intensity measure of proximity was not signi? cantly related to the ethical judgments and behavioral intentions of parents. Proximity measures the ‘‘feeling of nearness (social, cultural, psychological, or physical)’’ (Jones, 1991, p. 376) that the individual has for those affected by the action in question. It might be that parents considered the action taken unethical whether the results affected their friends/relatives or not. The ?ndings relative to social consensus and its effect on their ethical judgments and behavioral intentions were signi? cant, in most instances.Thus, parents did consider what others might think about a speci? c situation when forming their ethical judgments and intentions. The ethical perspectives of idealism and relativism also provide some insights regarding parents’ ethical judgments and behavioral intentions. Findings indicated that there is no s igni? cant relationship between parents’ attitude toward idealism and their ethical judgments and behavioral intentions. Parents, in this study, may not have perceived the scenarios as situations that should carry universal moral absolutes. On the other hand, parents’ attitude toward relativism signi? antly affected their ethical judgments and behavioral intentions but only for the second scenario. Relativism might be more likely to in? uence opinions on a situation-by-situation basis. The second scenario in particular expressed potential unhealthy effects on children. Therefore, parents might have perceived this scenario as involving questionable ethical practices. Our study has some limitations. Although parents were instructed to ? ll out the questionnaire individually or as a couple, we could not verify whether or not they communicated with each other. This raises the 308 Aysen Bakir and Scott J.Vitell possibility of a potential demand artifact. Secondly, although survey methods provide important information on individuals’ perceptions and beliefs, qualitative methods would bestow more detailed information on parents’ perceptions and attitudes. Future research should focus on more qualitative techniques to have a deeper understanding of perceptions and attitudes. Third, our ? ndings provide insights only from parents in the Midwestern USA. These ? ndings are not yet generalizable to other cultures or subcultures. Understanding parents’ perspectives on advertising directed at children is important.Future research should focus on a more detailed parental perspective to uncover how parents make judgments on whether advertising directed at children is ethical or not. Qualitative studies might provide more in-depth understanding. Uncovering these issues might minimize the discrepancy between parents and marketers. The debate on the effects of food advertising targeted at children has intensi? ed in the last several years among academicians, public policy-makers, and marketers. Companies need to respond better to the food-related debates in society, particularly to those related to healthy eating and ethical food marketing.In conclusion, our ? ndings assist both research and theory in the children’s advertising ? eld. With the increasing prominence of ethics in business/ marketing research, this study presents important ?ndings that advance our understanding of the potential antecedents to the ethical decision-making process for parents in situations involving advertising directed toward their children. We trust that the results generated by this research can be successfully used to guide future ethics research projects in this growing ? eld. Appendix A: scenarios Scenario 1 A food company whose products are, in part, argeted at children is planning to use ‘‘adver- games’’ (online games in which a company’s product or brand characters are featured). It is also consi dering encouraging children to contact their friends about a speci? c product or brand as part of their new advertising campaign. The company is considering using the internet, rather than more traditional media such as television, due to the highly debated relationship between aggressive food advertising and increased obesity among children. Action: The company decided to use Internet advertising for their new campaign. Scenario 2An advertising agency recommended that their client sponsor programs at schools and visit child care centers. These sponsored programs would make a ?nancial contribution to each school and child care center. During these visits the company would provide entertainment with the company’s wellknown characters and provide a sample of the company’s food products to children. If they do this, children who are less than 5 years old would be introduced to a range of products that might be considered ‘‘unhealthy. ’’ Action: T he sponsor decided to conduct these visits to the child care centers/schools and provide a sample of their products.Scenario 3 A candy and cereal company is considering selling books that spotlight the client’s brand. These children’s books provide content on ‘‘counting and playing. ’’ Children can play checkers with various fruit-? avored candies and can learn to count using various forms of calorie and sugar-? lled sweets and cereals. The books use the company’s brand as an example for the ‘‘counting and playing’’ content. Action: The candy and cereal company decided to sell these books to children. The Ethics of Food Advertising Targeted Toward Children Appendix B: scale items 309 APPENDIX B continued Moral intensity 4.The overall harm (if any) done as a result of the action would be very small Harm 2 The action will harm very few people, if any Harm 3 The action will not cause any harm in the immediate futu re Proximity If one were a personal friend of the person(s) harmed, the action would be wrong Social Most people would agree that the action is consensus wrong 5. Harm 1 6. 7. 8. Idealism 9. 1. A person should make certain that their actions never intentionally harm another even to a small degree 2. Risks to another should never be tolerated, irrespective of how small the risks might be 3. The existence of potential harm to others is always rong, irrespective of the bene? ts gained 4. One should never psychologically or physically harm another person 5. One should not perform an action which might in anyway threaten the dignity and welfare of another individual 6. If an action could harm an innocent other, then it should not be done 7. Deciding whether or not to perform an act by balancing the positive consequences of the act against the negative consequences of the act is immoral 8. The dignity and welfare of people should be the most important concern of any society 9. It is never necessary to sacri? ce the welfare of others 10.Moral actions are those which closely match ideals of the most ‘‘perfect’’ action 10. Attitude toward food advertising 1. 2. 3. 4. 5. 6. 2. 3. There are no ethical principles that are so important that they should be part of any code of ethics What is ethical varies from one situation and society to another Moral standards should be seen as being individualistic; what one person considers to be moral may be judged to be immoral by another person There is too much food advertising directed at children Advertisers use tricks and gimmicks to get children to buy their products Advertising to children makes false claims about utrition content of food products There is too much sugar in the foods advertised to children Advertising teaches children bad eating habits Advertising directed at children leads to family con? ict Attitude toward use of nutritional information Relativism 1. Different types of moralities can not be compared as to ‘‘rightness’’ Questions of what is ethical for everyone can never be resolved since what is moral or immoral is up to the individual Moral standards are simply personal rules which indicate how a person should behave, and are not to be applied in making judgments of othersEthical considerations in interpersonal relations are so complex that individuals should be allowed to formulate their own individual codes Rigidly codifying an ethical position that prevents certain types of actions could stand in the way of better human relations and adjustment No rule concerning lying can be formulated; whether a lie is permissible or not permissible totally depends upon the situation Whether a lie is judged to be moral or immoral depends upon the circumstances surrounding the actions 1. 2. 3. 4. I usually pay attention to nutrition information when I see it in an ad or elsewhereI use nutrition information on the label when making most of food sele ctions I don’t spend much time in the supermarket reading nutrition information I read about nutrition in magazines or books 310 Aysen Bakir and Scott J. Vitell References Ahuja, R. D. , M. Walker and R. Tadepalli: 2001, ‘Paternalism, Limited Paternalism, and the Pontius Plate Plight When Researching Children’, Journal of Business Ethics 32, 81–92. Barnett, T. : 2001, ‘Dimensions of Moral Intensity and Ethical Decision Making: An Empirical Study’, Journal of Applied Social Psychology 31(5), 1038–1057. Bass, K. , T. Barnett and G.Brown: 1999, ‘Individual Difference Variables, Ethical Judgments, and Ethical Behavioral Intentions’, Business Ethics Quarterly 9(2), 183–205. Bolton, R. N. : 1983, ‘Modeling the Impact of Television Food Advertising on Children’s Diets’, in J. H. Leigh and C. R. 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Gibson: 1978, ‘TV Messages for Snack and Breakfast Foods: Do They In? uence Children’s Preferences’, Journal of Consumer Research 5(September), 73–81. Gorn, G. J. and M. E. Goldberg: 1977, ‘The Impact of Television Advertising on Children from Low Income Families’, Journal of Consumer Research 4(September), 86–88. Grimm, M. : 2004, ‘Is Marketing to Kids Ethical? ’ Brandweek 45(14), 44–48. Grossbart, S. , L. A. Crosby and J.Robb: 1982, ‘Parental Diffusion Roles and Children’s Responses to Nutrition Education’, in B. J. Walker, W. O. Bearden, W. R. Darden, P. E. Murphy, J. R. Nevin, J. C. Olson and B. A. Weitz (eds. ), An Assessment of Marketing Thought and Practice, American Marketing Association Educators’ Proceedings (American Marketing Association, Chicago). Hudson, S. , D. Hudson and J. Peloza: 2008, ‘Meet the Parents: A Parents’ Perspective on Product Placement in Children’s Films’, Journal of Business Ethics 80, 209–304. Hunt, S. D. and S. 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Moorman, C. : 1998, ‘Market-Level Effects of Information: Competitive Responses and Consumer Dynamics’, Journal of Marketing Research 35(February), 82–98. Nelson, M. R. : 2002, ‘Recall of Brand Placements in Computer/Video Games’, Journal of Advertising Research 42(2), 80–92. Oanh Ha, K. : 2004, ‘Neopets Sites for Children StirsControversy’, Knight Ridder Tribune Business News, September 14. Park, H. : 2005, ‘The Role of Idealism and Relativism as Dispositional Characteristics in the Socially Respon- The Ethics of Food Advertising Targeted Toward Children sible Decision-Making Process’, Journal of Business Ethics 56, 81–98. Pollay, R. W. and B. Mittal: 1993, ‘Here’s the Beef: Factors, Determinants, and Segments in Consumer Criticism of Advertising’, Journal of Marketing 57(July), 99–114. Robin, D. P. , R. E. Reidenbach and P. J. Forrest: 1996, ‘The Perceived Importance of an Ethical Issue as an In? uence on the Ethical Decision-Making of AdManagers’, Journal of Business Research 35(1), 17–28. Rose, G. M. , V. D. Bush and L. Kahle: 1998, ‘The In? uence of Family Communication Patterns on Parental Reactions toward Advertising: A Cross National Examination’, Journal of Advertising 27(4), 71–85. Singhapakdi, A. , S. Vitell and K. L. Kraft: 1996a, ‘Moral Intensity and Ethical Decision-Making of Marketing Professionals’, Journal of Business Research 36, 245–255. Singhapakdi, A. , S. Vitell and K. L. Kraft: 1996b, ‘The Perceived Role of Ethics and Social Responsibility: A Scale Development’, Journal of Business Ethics 15(11), 1131–1140. Singhapakdi, A. S. Vitell, K. C. Rallapalli and K. L. Kraft: 1996c, ‘The Perceived Role of Ethics and Social Responsibility: A Scale Development’, Journal of Busine ss Ethics 15(11), 1131–1140. Singhapakdi, A. , S. J. Vitell and G. R. Franke: 1999, ‘Antecedents, Consequences and Mediating Effects of 311 Perceived Moral Intensity and Personal Moral Philosophies’, Journal of the Academy of Marketing Science 27(1), 19–36. Vitell, S. , A. Bakir, J. Paolillo, E. R. Hidalgo, J. Al-Khatib and M. Y. A. Rawwas: 2003, ‘Ethical Judgments and Intentions: A Multinational Study of Marketing Professionals’, Business Ethics: A EuropeanReview 12(2), 151–171. Wentz, L. : 2005, ‘Pop Stops Kids’ Marketing In Europe’, Advertising Age, January 30 issue. York, E. B. : 2007, ‘Another Study Slams Food Ads Aimed at Children’, Advertising Age, September issue. Aysen Bakir Department of Marketing, Illinois State University, Campus Box 5590, Normal, IL 61790-5590, U. S. A. E-mail: [email  protected] edu Scott J. Vitell School of Business Administration, The University of Mississippi, Universi ty, MS 38677, U. S. A. E-mail: [email  protected] olemiss. edu Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.

Glaxo Wellcome Mini Case

Glaxo Wellcome Inc. Mini-case Report April 2, 2007 [pic] Executive Summary Glaxo Wellcome Inc’s primary business is to market prescription products to physicians and health care providers. One of the top three pharmaceutical firms in the world, Glaxo Wellcome Inc. held about 4 percent of the worldwide prescription pharmaceutical market. The U. K. based company was formed in 1995 when Glaxo Pharmaceuticals acquired Burroughs Wellcome. While the company is based in the U. K. , the U. S. market represented approximately 40 percent of worldwide sales while the U. K. produced about seven percent. As of 1997 Glaxo Wellcome Inc. had 22 local operating companies in nine countries including the U. S. Because of the harsh requirements of the Food and Drug administration (FDA) most products are introduced in one of the other eight countries before seeking U. S. approval. Migraine medicine is a primary growth area for Glaxo. The company was first to manufacture and market triptans, a new class of prescription migraine medicine. Triptans were launched in 1993 and work specifically on the 5HT-1 receptor sites believed to be the primary cause of migraine headaches. Imitrex was the first triptan produced and sold by Glaxo in the U. S. The concern now is how the company should best market the second-generation triptan by the company, Amerge. This will be the first time a pharmaceutical company has two prescription triptans available on the market. Problem Statement and Key Issues Glaxo Wellcome’s U. S. division faces the task of determining a positioning strategy for their new triptan, Amerge, to increase total market share in the currently underdeveloped migraine market. Not only should the marketing decisions combat pressure from competitors with comparable products, but also the pharmaceutical marketers must elevate the importance of the new product’s placement on the formularies of managed care plans. Additionally, the development of a direct-to-consumer (DTC) advertising campaign that is informative and persuasive, without offending the medical community, must be included as a part of the positioning strategy. SWOT Anaylsis for Glaxo Wellcome Inc. Strengths: Seen as a reliable prescription drug manufacturer, therefore has a positive reputation †¢ Global company with 4% of the worldwide prescription pharmaceutical market †¢ Company has a strong balance sheet and growth potential †¢ Imitrex dominates the migraine market as the first and only triptan available from 1995-1998 Weaknesses: †¢ Does not have a clear marketing strategy for the triptans †¢ Largely focused on competitor activity instead of growing market shar e †¢ FDA regulations create long approval periods The recent business combination of Glaxo Pharmaceuticals and Burroughs Wellcome in 1995 has created organizational challenges Opportunities: †¢ 90% of the migraine market is underdeveloped †¢ More marketing options include the ability to directly contact consumers as well as doctors and hospitals (in the U. S. division) †¢ Ability to market line extensions for new products such as Amerge †¢ Difficult for new competitors to enter the market because of R&D and approval processes Threats: †¢ Non-acceptance as a formulary of managed care plans Competitors’ products, such as Zomig, released before and out-performing Amerge †¢ Changes in healthcare legislation, including Medicaid and Medicare Alternative Courses of Action 1. Replacement Strategy: the U. K. division chose this plan of action, ceasing all promotion of Imigran (U. K. name brand for Imitrex) and positioning Naramig (the U. K. brand nam e for Amerge) as the recommended drug to start treatment of migraine patients. The replacement strategy results met Glaxo U. K. expectations, but damaged the growth of Imigran and did not prevent Zomig from successfully entering the market. Furthermore, the U. K. market has two major differences from the U. S. market: pharmaceutical companies cannot legally advertise their products to consumers, and the health care system is socialized. The implications of these two differences in terms of positioning strategies are vast. The inability to utilize DTC advertising prevented the U. K. from successfully pursuing alternative positioning strategies, such patient-based segmentation, due to concerns about the physician’s ability to identify such segments and further confusing the prescribing process. Moreover, in a socialized health care system where patients are entitled to free medical care, patients can seek treatment easier and can be less involved in the prescribing process than in an insurance-based system where there is more monetary involvement. Although this strategy might communicate a clear message about the drug’s superiority, it would devalue the brand name built for Imitrex, drastically impacting its potential profitability as well as the ability to continue to recuperate the high investments already sunk into the R&D and marketing of Imitrex. . Competition Strategy: since Zomig is expected to be launched prior to the FDA approval of Amerge, Glaxo U. S. can position Amerge directly against Zomig. They can utilize their position as the market leader to leverage Amerge’s positioning as the true second-generation triptan providing the best relief on the market. Glaxo U. S. can back up their claims with the results from the UK where the majority of previou s non-triptan users prefer Naramig. Although this strategy could successfully prevent the competition Zeneca from gaining substantial market share through the marketing of a second-generation triptan, it would also devalue the Imitrex brand similar to the replacement strategy. 3. Pricing strategy: one of the weaknesses identified for Imitrex is its relatively high price in comparison to over the counter (OTC) medication, which is further exacerbated by the medication’s high rate of recurrence. Since most patients in the US pay either partially or fully for their medication, Amerge could be positioned as an affordable alternative to Imitrex. Amerge could be priced similar to OTC medications and its lower recurrence rate could be promoted to further emphasize its affordability. A possible downside to this strategy is devaluing the image of Glaxo Wellcome for physicians because of a perceived â€Å"lack of quality† that can accompany low priced products. On the positive side, it could detract from competitor’s noise and would allow Imitrex to continue in its position as the market leader. It could also improve the consumer perception of Glaxo Wellcome as a company that cares for patients that cannot afford expensive medication. 4. Lifestyle Segmentation Strategy: Glaxo U. S. could create an emotional appeal for Amerge by merging the facts about its efficacy, side effects and dosage with the feelings of patients. Prospective consumers seek treatment for their migraines not only to abate the pain, but also to be able to continue productivity in their lives during a migraine episode. Therefore, Amerge’s proven efficacy, combined with low risk of side effects, low recurrence rate and ease of administration could be used to promote it as the migraine medicine that â€Å"let’s you get on with life†. Unlike the pricing strategy, this course of action would emphasize the product benefits and thus would be more beneficial to Glaxo’s image. But similarly to the replacement and competition positioning strategies, it weakens Imitrex’s position in the marketplace. 5. Benefit-based Portfolio Strategy: Glaxo U. S. can present both migraine medicines as a portfolio of solutions to migraine pain. Amerge could be positioned as the â€Å"milder† new-generation triptan, and Imitrex could be repositioned as the â€Å"strongest and fastest† triptan with proven efficacy to treat acute pain. This positioning strategy would allow Glaxo U. S. to continue to reap the benefits from the marketing initiatives already invested in Imitrex, while utilizing its current standing as the market leader as a platform from which to launch Amerge. Possible drawbacks to this strategy include cannibalization of Imitrex sales as well as confusion in the minds of physicians and consumers as to which drug would be the best option for a patient. Recommendations Given the considerable expenditure in R&D and marketing of pharmaceuticals, we recommend that Glaxo U. S. choose the benefit-based portfolio strategy. We feel strongly that Glaxo U. S. should not abandon the efforts placed in the marketing of Imitrex, but rather leverage its current market position to support the launch of Amerge. We believe this strategy could effectively combat competitors’ efforts to enter the marketplace. The company can utilize DTC advertising to send a clear message of the benefits each drug offers to patients. Nevertheless, it is imperative that Glaxo U. S. also invest resources in conveying the right message to physicians and negotiating placement of both drugs on the formularies of managed care plans; otherwise the likelihood of switching to a different brand or forgoing treatment altogether increase significantly. With a portfolio strategy and clear differentiation among the products, Glaxo U. S. is better armed to capture the 90% of migraine sufferers that were not being medicated with a triptan as of 1997. Conclusion Although Glaxo Wellcome is one of the largest pharmaceutical companies in the world it has many opportunities for growth and development. One of these opportunities is with the migraine medicines known as triptans. Although Glaxo already has one triptan on the market, there are still many migraine sufferers that are not being treated. With the benefit-based portfolio strategy Glaxo can market its second-generation triptan, Amerge to the millions of migraine sufferers.

Critical Review Article Example | Topics and Well Written Essays - 2000 words

Critical Review - Article Example Companies who have employed the use of teams in their organizations have experienced benefits of improved flexibility, cost savings, customer focus, innovation and a more motivated staff force (MacBryde and Mendibil 2001). Because of this mounting reliance on the use of teams, it has become imperative that there should be clear guidance on how to assess what constitutes team performance as well as reliable direction on how to measure the same. The research undertaken by Barbara Senior and Stephen Swailes entitled â€Å"The Dimensions of Management Team Performance: A Repertory Grid Study† is therefore timely, as it is significant. The research paper of Senior and Swailes aims to encapsulate the concept of team performance, concentrating mainly on management teams. The data gathered from study conducted insinuates certain factors that characterize team performance, namely: team purpose, team organization, team leadership, team climate, interpersonal relations, team communication, and team composition. Another factor has been identified with arguments as to their validity in characterizing team performance. The methodology used was suitable and the results of the research were appropriately derived at. However, the presentation of the different factors identified needs to be more organized. Some of the concepts being presented were well-argued and supported, while there are some which requires more foundation and substance. The research paper starts with a brief history on the concept of workgroups and teams, illustrating that interest in this topic in social psychology dates back to the early 1920’s. The study then provides a definition of what constitutes groups. The paper adopted Schein’s (1988) definition which considers group as people who have interaction with each other, are â€Å"psychologically aware of one another† and who recognize that they belong to a set or a group, regardless of their number. Other factors that could be considered

PROJECT MANAGEMENT ASSESSMENT - Project Plan Assignment - 1

PROJECT MANAGEMENT ASSESSMENT - Project Plan - Assignment Example The plan includes a project initiation document that explains the objective and the importance of this project. Thereafter a detailed work breakdown structure has been formulated explaining the entire task associated with the project. A staff plan as well as a budget plan has also been drafted in order to explain the management regarding the requirements of the project. A project schedule has also been prepared giving an estimate of the time required to bring the project to its conclusion. The project involves the implementation of various project management tools in order to ensure the feasibility of the project. Table of Contents Project Title 4 Responsibilities of the Project Manager 4 Project plan overview and critical assumptions 4 Project Initiation Document (PID) 4 Objective 5 Stakeholders 7 Internal Stakeholders 7 Work breakdown structure 8 8 Staffing plan 10 Role Requirements 10 Project Schedule 11 Budget plan 11 Quality management plan 12 Risk management plan 12 Communicati on management plans 13 Appendix 17 Project Title Development of customer services department of Shipkart.com Responsibilities of the Project Manager The project manager will be primarily responsible for the completion of the project. The individual working as the project manager will have the responsibility of supervising the project from its initiation phase through to its execution phase and then to its completion phase. The project manager, in close connection with the project sponsor will have to develop the business case. The project manager will be required to develop a feasible project plan that caters to identify the resources that is required for the fulfilment of a particular project. In addition to that the project manager will also manage the completion of the project in accordance with the project team. The individual is also responsible for reporting the status of the project to the higher authorities such as the project sponsor, the project advisory board and the top level management of the company. The individual will also direct his/her attention towards risk management of the project and escalation of issues which are detrimental to the life of the project and cannot be resolved by the project team thereby making sure that the project stays in schedule and is very well within the budget (Project Smart, 2013). Project plan overview and critical assumptions Project Initiation Document (PID) The project initiation document will give a comprehensive overview of the project plan based upon which the project will be authorized and thereafter permitted to progress. The documents will also serve as a foundation on the basis of which the project will be evaluated in terms of the delivery timescales associated with the project as well as the content and quality of the deliverables. In addition to that, the purpose of the project initiation document is to set forth the detail required to successfully carry out and control the project thereby facilitatin g communication between the stakeholders of the project. The project plan is a dynamic and expandable and is henceforth expected to change over time with the availability of more information regarding the project. Objective The

Project management Essay Example | Topics and Well Written Essays - 1000 words - 1

Project management - Essay Example This research shows that the project had clear goals but unclear requirements and the frequent changes required rescheduling and resulted in budget overruns. Although the project had budget overruns, it however met the desired outcomes. This study has shown that the key elements of project management are critically important in meeting the objectives and goals of project and giving the desired outcomes. Project management is an art and a science that involves organizing, securing, planning and managing of resources with an aim to accomplish specified goals. A project can be defined as a short-term or temporary endeavor whose beginning and the end is clearly defined. Project management plays a significant role in facilitating execution of projects such as new software development, installation of new hardware or building a facility. As mentioned by Wessels, project management helps in selecting, managing and supporting of projects that are of significant importance in accomplishment o f an organization’s objectives, making it vibrant at marketplace and maximizing shareholders wealth. In an organization set up, various divisions and departments compete for scarce human and financial resources; project management plays an important role in rational decision framework enabling people to make the appropriate project investment decisions. Project management plays a critical role in management of outcomes mainly the cost, time and performance of the project. Projects are selected based on cost and benefit analysis where their return on investment is evaluated against cost of implementation. Role of project manager According to Lewis (2004, p. 19), project manager has the total responsibility to ensure that all project details are handled properly, this requires them to be highly proactive and not reactive. Project manager should follow up on things ordered or scheduled ensuring that things like requisition and purchasing are effectively running, project manager helps in project planning, controlling, monitoring and organization of project resources. Project manager plays a significant role in giving a project economic approach by determining its (ROI) return on investment. Project manager is also responsible for project risk management; he must identify risks, monitor and design effective response. He is also responsible for project reporting to the management of the organization. Key elements in project management Key elements in project management include managing and controlling project scope through clearly established aims, objectives and goals, managing cost element, managing risks, managing human resources, managing time planning, control and scheduling, and managing quality to meet the desired standards (Lock, 2007, p. 78). Project integration, management communications, procurement processes, and quality are also key element in project management. Managing the project scope Project management plays a critical role in ensuring that the aims, goals and objectives of the project are clearly and articulately established. Many projects fail due to wrong or unclear goals and requirements. With unclear goals, project experiences problems, however, with wrong goals, projects fail spectacularly (Rusell 2007, p. 45). Scottish Parliament has clear and articulate goals and objectives but had no clear requirements. Scottish parliament changed requirements of that projects several times, for instance they increased functions of the building demanding for more size and space, these changes caused various difficulties to the project team causing budget

Mmm17 Essay Example | Topics and Well Written Essays - 1500 words

Mmm17 - Essay Example In today’s world it has become imperative for organizations to disclose information that support and complement their responsible business claims. An organization that fails to voluntarily disclose its sustainability practices is bound to suffer the consequences as in this age, the stakeholders give immense value to the ethical aspects of the business and what measures an organization takes to give back to its people and the community it operates in. a successful business not only indulges in ethical practices that safeguard the rights of the people and protect the environment, but also makes an effort to relate the information regarding the purpose of each such step taken. Feedback is welcomed and acknowledged to increase a business’s worth in the minds of the stakeholders and the consumers. The changing market dynamics in order to increase business transparency has given birth to many concepts like corporate social responsibility, green marketing, employee rights etc. Corporate social responsibility refers to an organizations voluntary actions to give back to the society it operates in. in this way, businesses ensure that every member of their value chain benefits equally from the business as they are the ones who contribute to the end profit (Jamali & Mirshak, 2007). For example, any organizations involved in dairy products ensure that the farmers are incentivized adequately, the cattle are provided with hygienic conditions and the purification centers follow strict quality standards. Businesses also tend to build the rural areas in order to increase the opportunities for the farmers to generate more crop yield, breed more animals etc. by building schools and health centers in the rural areas the farmers are able to provide their children with better education and health and believe that the business they work with cares for their well-being as well.

Testing Weak-Form Efficiency of Chinese Stock Market Literature review

Testing Weak-Form Efficiency of Chinese Stock Market - Literature review Example A specific concern of this review involves the weak-form of market efficiency. Ho and Lee (2004) provided deep insights in this aspect, outlining background information as well as an outline of empirical evidences that defined, explained and determined weak-form efficiencies in stock market such as those in the United States. Chandra (2008, pp.423) also explained relevant hypotheses such as how current price of a stock reflects all information found in the record of past prices and volumes, which is translated to the argument that past and future price movements are not related. A very important aspect in the existing literature on stock market efficiency is the testing process and methodology. This makes sense because in order to determine the performance and output of a specific stock market, it must be assessed or tested for efficiency. In this regard, numerous studies were undertaken. For instance, the works of Campbell, Lo and MacKinlay (1997) as well as Barber and Lyon (1997) a nd Loughran and Ritter (2000) demonstrated and examined the conventional strategies for testing performance under normal economic conditions. The information provided by Preston and Collins (1966) is quite helpful for this study. The researchers outlined the criteria by which stock market efficiency could be appraised. ... A review of the corpus of literature demonstrate high amount of work done on weak market efficiency. One of the earliest to have investigated this theme is Fama (1965), who found a serial correlation from among the top stocks listed in the American stock market by evaluating time-dependence that occur in the current and past returns. Further studies have argued in favor of adding additional variables such as when Campbell and Shiller (1988) and Harvey (1995) found the need to include financial and macroeconomic variables in the outcome and distribution of return rate. Review of empirical evidence on weak-form efficiency from developed Market The general consensus, at least from the perspective of most researchers such as Fama (1970), Bhatti, Campbell et al., Al-Shanfari and Hossain (2006), Lim (2008), is that market efficiency is not realistic. Groh (2009, pp.5) explained that as a result of such condition, there must exist adequate opportunities for profit, which are the same as ine fficiencies, compensating investors in the process for the cost incurred in the trading and other market activities. Abramowicz, Maciaszek and Wecel (2011, pp.113) echoed this, as they reported that although possible – though only demonstrated in its higher probability in developed markets – market efficiency is not realistic. These claims were validated by the work of Moyer et al. (2012, pp.48) who reported in their investigation that the US markets are efficient in the weak-form context. Another study that supports this position is that one undertaken by Dow and Gorton (1997). In this study, it was found that economic efficiency has insignificant an impact on stock market efficiency. What this means is that wealthy

Group assignment Example | Topics and Well Written Essays - 250 words

Group - Assignment Example In contrast, instrumental values are strategic values that â€Å"provide the rationale† for the activities of the organization and link the organization to the environment and its stakeholders† (p. 389). The role of management is to communicate these values explicitly through dissemination of policies and procedures that provide guidelines in their adherence. Likewise, through functions of planning, organizing, directing and controlling, management should monitor the performance of employees according to well-defined standards that safeguard compliance to corporate values. The work environment, should therefore be designed to structure strategies that faciliate commitment to these values. This is made possible through structuring clearly explicit mission, vision, and values statements; as well as policies and procedures with a code of discipline. All of these structural guidelines would direct employees in exhibiting work ethics and behavior which would ensure that these values are ingrained and imbibed in the conduct of their responsibilities towards each other and in interactions with other

Logistics Management Essay Example | Topics and Well Written Essays - 2500 words

Logistics Management - Essay Example You are a consultant who has been asked to write a report that discusses what logistic management would involve for clothing manufacturing firms sourcing in the Pacific Rim. The objectives of the report are to explain with reference to the literature the logistics requirements for getting the supplies from the Pacific Rim to Australia, write an action plan that lists the steps of logistics management, describe each of the steps by stating what will be done and why it will be done, and discuss the constraints of logistics management in meeting the clothing firms' sourcing needs. This is to be accomplished thorugh writing an academic report; providing an executive summary, introduction, and conclusion; using the report as a way to demonstrate knowledge of the course content, including the textbook and additional readings that have been utilized, using appropriate headings, using 8 references, using minimal direct quotes, using text referencing and a reference list; and ensuring all aspects of the marketing guide are satisfied. Global sourcing is a procurement strategy aimed at exploiting global efficiencies in production. While a global sourcing process is usually initiated as a mechanism of exploiting cross-geographic arbitrages (simply put, identifying cheaper global sources), it is now a standard step in the global expansion of firms. Global sourcing advantages extend to identifying alternate supplier sources, utilizing buffer capacities and taking advantage of specific geographical talent pools (Wikipedia 2008). The textbook containing this case study also encompasses the entire concept of the supply chain. The supply chain can be defined as: A supply chain, logistics network, or supply network is the system of organizations, people, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform raw materials and components into a finished product that is delivered to the end customer. Supply chains link value chains. A typical supply chain begins with the extraction of raw material and includes several production links, for instance; component construction, assembly and merging before moving onto several layers of storage facilities of ever decreasing size and ever more remote geographical locations, and finally reaching the consumer. Many of the exchanges encountered in the supply chain will therefore be between different companies who will seek to maximize their revenue within their sphere of interest, but may have little or no knowledge or interest in the remaining players in the supply chain. (Wikipedia 2008) The purpose of this report is to discuss what logistics management would involve for clothing manufacturing firms sourcing in the Pacific Rim. In doing so, the purpose is to explain with reference to the literature the logistics requirements for getting the supplies from the Pacific Rim to Australia, write an Action Plan that lists the steps of logistics management, describe each of the steps by stating what will be done and why it will be done, and discuss the constraints of logistics management in meeting the clothing firms' sourcing needs. Given in the case study is that: Global sourcing has become a widely

How journalists influenced US war efforts in Vietnam Research Paper

How journalists influenced US war efforts in Vietnam - Research Paper Example The differences that led to war involved the Northerners favoring communist form of rule and the Southerners favoring non-communist form of rule. The stand by Southerners tended to cohere with the desire of USA, which hated communist rule. Coupled with the fear of about the possible spread of communist rule across the entire East Asia in case any country managed to secure an opportunity, USA resolved to help South Vietnam intensify war against North to defeat the idea of communism. The perceived support given to the South prompted the North to fire directly on US ships1. This act aggrieved US authorities thus resolving to direct involvement and participation in the war. This is how US entered into the Vietnam affair, where it emerged unsuccessful due to various factors. One of the main factors was the involvement of American journalists in an era when televisions were widespread across many households in US. 2The digital technology of television and newspapers facilitated the process of journalists transmitting real videos and pictures as happened in the battle ground. Influence of Journalists on US efforts in Vietnam War Prior to the arrival of the US journalists in the war field, US government tended to deliver deceptive reports concerning the progress of the war. At first, the government denied claims that US troops took part in the war, while they did. This came clear after the arrival of the journalists in the war field, who captured and aired the real events. The reports send by the journalists showed how US participated in aerial bombings that killed many people. Some of the news showed children running helplessly in Trang Bang after being hit by and injured by bombs fell by US military. 3These pictures frightened and aggrieved most of the Americans who started blaming the government for mismanaging American resources by fighting innocent children. In fact, television news and newspapers covered a terror-stricken girl running along the street naked after her cloths burnt in bomb triggered fires. In bid to quell citizens, American government responded by claiming that the attacks on children were due to misdirected bomb thrown by South Vietnamese soldiers4. This claim was in total contradiction to the pictures and videos transmitted by journalists, which showed US airplanes dropping the bombs. 5Journalist reported and transmitted videos of massacres of US soldiers during the Tet offense of 1968, alongside flying of dead bodies of soldiers back to US. Furthermore, journalists investigating the Vietnam at some moments focused on the sad atrocities caused by US soldiers who massacred people across Vietnam. This news increasingly aggrieved US citizens who continued to declare strong opposition of the government in the Vietnam War. 6In spite of the media transmitting clear pictures and information as happening in the battleground, US government persisted on denial and even quoting small number of deaths of soldier contrary to the visual records transmitted by media. It this continued denial of the government and closure of truth that aggravated public anger to an extent of engaging public protests demanding for withdrawal of US troops from Vietnam. 7The media through the respective investigative journalists stationed in Saigon did at one time transmit images about Buddhist crisis of 1963. The images showed people committing serious suicide away of protesting restriction to religious rights by Diem

Samara Aziz 20th century drama coursework Essay Example for Free

Samara Aziz 20th century drama coursework Essay We see how Catherine has an open relationship with her father figure by the way in which she talks and acts around him, but this could be what attracts Eddie to her. Catherine is a very nai ve person. She is a young minded and obviously unaware of her blossoming sexuality. As the play continues, we see Catherine demonstrating a certain closeness to Rodolpho. Now if we take a look at Rodolphos character, we see how he is very different to other men. We see how he likes to sing, dance and make clothes. All these in the 1950s were seen as very feminine but due to Catherines simple intellect she doesnt realise this. All she sees is how he has a very open mind and entertaining character. She is captivated by his charm. We will now look at a conversation between Eddie and Beatrice about Catherine and Rodolpho. Eddie She tell you anything? Beatrice Whats the matter with you? Hes a nice kid what do you want from him? Eddie Thats a nice kid? He gives me the heeby jeebies. Beatrice Ah, go on, youre just jealous. This conversation between Eddie and Beatrice is one of the first signs, which show how Eddie disapproves of Rodolpho. He also talks about him with little respect. But a question to consider, is does Eddie dislike Rodolpho because of the fondness which is growing between him and Catherine or because he is unsure of his own feelings for Rodolpho? Dramatic tension begins to arise between Eddie and Rodolpho as we progress through the play. Maybe because Rodolpho is enforcing Eddie to think about his own feminine side. This, however, could be frustrating Eddie, because of the fact that he is confused about his feelings. Beatrice also plays a part as she feels how her relationship with Eddie is rather dry. Eddie Why? What worries you got? Beatrice When am I gonna be a wife again? Eddie I aint been feeling too good. They bother me since they came. We see Beatrice asking Eddie when shes going to be wife again or in other words when their sexual relationship is going to bloom. This shows tension between the two characters as we see them both feeling very uncomfortable with each. I would stage right, while Beatrice is stood directly in front of him, but the two characters would avoid looking straight at each other. The narrator in this play also has the role of a character, which makes him different to other narrators. His role changes from narrator to the lawyer, Alfieri. As a character, Alfieri listens and gives advice to Eddie. He slips from being a narrator to a character. Here we see a conversation between Alfieri and Eddie. Alfieri But, Eddie, shes a woman now. Eddie Hes stealing her from me! Alfieri She wants to get married Eddie she cant marry you, can she? Here we see a heated conversation about Catherine and the fact that Eddie is unhappy about her marrying Rodolpho. Alfieri listens to Eddie but also tells him what he thinks. As a narrator, the story is told through flashbacks pointing out major elements of the play such as the beginning paragraph in Act 2. Alfieri On the twenty-third of that December a case of Scotch whisky slipped from a net while being unloaded The narrator uses precise language to make sure the audience understand. A very clear description is given. If you looked into the narrators character I would describe his as a kind of a symbol of fate as he is watching down on all the characters. If I were to stage the narrator, Id stage him visible, behind the set, on a bridge, looking down on all of the characters. This symbolises the view from the bridge. By using the thought of the bridge, Miller is applying imagery, as the view from the bridge is the narrators view from the bridge, or, societys view from the bridge. I think that the role of the narrator in A View from the Bridge is very effective in expressing the authors concerns as the narrator covers a variety of different aspects, both socially and moralistically. Miller has shown us that as well as telling the story, the narrator can also take over a number of other roles. I think this is a very good device, which Arthur Miller has used and succeeded in doing so. The symbolism and imagery is also variably used to portray certain images, which are used to help picture the scene, such as the bridge. I think Arthur Miller has put a great amount of thought into this play with which he has proved that he can produce to satisfy the audience. Show preview only The above preview is unformatted text This student written piece of work is one of many that can be found in our GCSE Arthur Miller section.

Economics Of The Music Industry Economics Essay

Economics Of The Music Industry Economics Essay The Industry has reacted very badly to the consumption of CD sales. Many people blame the decline of CD sales on illegal file sharing and downloads but also to be considered is the way that CDs have been distributed and marketed over the last few years. Some of the reasons could include non competitive pricing of CDs, reduced number of shops stocking them and some of the major labels unwillingness to experiment with other form of entertainment industry such as video games and DVDs which hold a considerable force on the industry.  [1]  The competition from other media such as the gaming industry has also affected CD sales. EA (Electronic Arts) is incorporating music and cinema experiences into the games themselves  [2]  . Piracy through CD burning has affected the sales badly unlike other industries such as the software and gaming industry which is forever updating itself. The CD has been around for over 20 years now and the music industry has not been so fast to keep reinventing itself and has fallen behind in the technology race. Whilst Physical sales are falling there has been an increase of ticket sales at concerts and festivals and revenues have grown. In 2009 a report was released by the Performing Rights Society showing the retail value of recorded music fell 6% whilst live revenues grew 13%.  [3]  David Kusek describes this as a good thing for the industry as only 4 percent of records ever sold enough copies to break even.  [4]  The result in the increase of demand for live music could be down to the record industries obsession with marketing and huge profit margins and has gradually become detached from its artists and consumers. Where as generally live music promoters and agents have always been closer to the artists and their audiences  [5]   The relationship between artist, consumer and label is changing due to technology and the internet and this has affected the way in which music can be distributed. The relationship between the artist and label can be difficult. Music labels sometimes edit the artwork or the title of a song, much to the frustration of the artist. The artists have turned to the Internet and the role of labels is becoming increasingly diminished, as artists are able to freely distribute their own material through file sharing, web radio, and other peer to peer services, for little or no cost.  [6]  Bigger artists have ended their contracts. Radioheads problems with their label in 2007 ended with them releasing their album on their own and subsequently released as a pay what you want sales model as an online download.  [7]   The relationship has also changed between artists and consumers. Through the internet fans are now a lot closer to the favourite artists. For example, Tom Delonge, an American Rock musician created a website called Modlife.com which allows uses to connect to bands, artists and personalities using live video broadcasts, text messaging, video blogs, mobile updating and twitter feeds.  [8]   The digital transformation has had a huge impact in the way artist merchandise is sold. The internet can now be use to sell merchandise directly marketed towards the fans. Before the internet, merchandising was selling hats and shirts to a long queue of fans at a venue, but now products are directly related to current fashions and culture. For example Grindstore.com specifically directs is merchandise towards fans of rock music and states it is able to offer the most comprehensive range of male and female music merchandise from all over the world  [9]  Grindstore features clothing from bands such as Greenday, Metalica, Slipknot and Motorhead all in one place. Other similar companies such as the American based Hottopic.com are a multi million dollar company showing revenue over twelve months ending July 31, 2009 was $768,200,000, a 4.52% increase from the previous year.  [10]  This just proves the power of music merchandising and direct marketing using the internet. For the music industry it is a hard task safeguarding existing sources of income and finding ways of developing new ways of income. One solution to safeguarding the future of music industrys income is through a change in the way which music is licensed. One way might be through a small fee that allows users to freely download all music. This could be through a tax which is payable on media products such as mp3 players, Ipods etc or through a blanket licence similar to that of the British Broadcasting Cooperation which is charged to all United Kingdom households, companies and organisations using any type of equipment that can receive and play music. These possibilities could be created by the record companies or part government intervention. I think this will be one of the best ways to create a source of income as it is becoming increasingly harder to police the web for illegal downloads. Another possibility in creating a new source of income is to become more precise in which the PRS collects royalties through the advances of the internet by creating a framework. Currently royalties collected from restaurants for example rely upon human estimations and averages and no consideration is made for the diversity of music played in different types of venues. The use of digital technology could help this to be more accurate. To conclude, I have discussed how the UK music industry has reacted to current changes in consumption and distribution with specific analysis to how the industry has reacted badly to the decline in CD sales but the consumption of live music has increased. I have shown how direct marketing and merchandising by companies like grindstore.com is creating big profits for the music industry through the use of the internet. Through the changing relationships between artist, label and consumer I have shown how music distribution is changing and how due websites such as modlife.com fans are ever closer to their artists. Finally I have demonstrated ways in which the music industry can safeguard their revenues such as a blanket licence or by creating new ways in which royalties are collected.