Reference no: EM131277124

Heritage Research Associates
Tim Colley and John Williams had not been in business long. They started a small marketing research firm in their hometown and had barely made ends meet by taking on very small accounts working mainly with start-up retailers. Their marketing research experience was limited, but they knew the basics. Since they had not taken any specialized training beyond a college course in marketing research, they decided to join the Marketing Research Association. Tim explained their reasoning: "We can tell clients we have the necessary credentials to be members of the most notable marketing research organization in North America." The partners thought this was a good way to persuade clients they knew what they were doing.

They added the MRA logo to their promotional materials along with the line: "Heritage is a Certified Member of the MRA." They used their limited funds to promote Heritage Research Associates and even took out a quarter page ad in a national business magazine. A phone call early one morning marked a real opportunity for Heritage. The potential client represented his organization as a "privately funded foundation that promoted business rights and the maintenance of a laissez faire pro-business environment." They were interested in Heritage doing some research that would disprove some university sponsored research whose findings had been in the news. The findings were unfavorable toward one of their prominent member industries.

The caller stated: "Our patrons are upset that such erroneous information is being fed to the American people, and we are quite prepared to fund additional research to clarify the facts. In fact, we are willing to fund several studies if we get the results we are looking for. Are you up to it?" Tim and John assured the caller that the foundation could be certain that Heritage Research Associates could deliver quality, objective research that would clear up any misconceptions in the minds of the public. The call ended with a promise to send the biased university research reports immediately. A second call was set up to follow in three days.

In the follow-up call the potential client got more specific. His foundation had hired some independent scientists who were willing to testify that certain environmental conditions were not being caused by the concerned industry group. "We have had little problem in getting three scientists, with doctoral degrees from well-known universities, to make statements affirming that firms in one of our major industry groups is not doing any significant harm to our environment." The client went on to say: "What we want now is a study from an independent research firm, such as Heritage, to report attitudes of consumers in terms of whether they are in favor of more industry regulation.

We are willing to fund a small pilot study and, if we find Heritage is capable of delivering objective data, we are ready to sign on for a series of perhaps a dozen studies. Furthermore, we are well financed, and I am quite certain we can meet your bid to do this work." The caller went on to ask for a proposal that would outline methods to select the survey sample, research questions, and a sample analysis, including how Heritage would word the report. "Remember, we want this to be an independently prepared project using all your abilities to craft an objective research study," the client stated. Tim and John agreed to deliver a proposal within 10 working days. Tim and John were thrilled that this opportunity had fallen to them. "Did you hear what he said in terms of ‘being certain to accept our bid'?"

John exclaimed. "He's telling us he is going to pay whatever we ask. This isn't a penny-pinching client." Tim said, "Just a minute, though. He's talking about the studies after the pilot study. What if they don't like the first study? We won't ever get to the big accounts." John agreed. "We've got to design a study they will like so we can get the additional work at a premium. This could set our little firm off in a totally new direction!" "This can make us the most talked-about research firm in the world!" Tim said.

1. Do you think it is ethical to use membership in an association that doesn't require any demonstration of expertise to lead customers into thinking the membership conveys some automatic claim of competency?

2. Consult the MRA Code of Marketing Research Standards. Is the answer to question 1 covered? Explain.

3. What problems do you see in the future for Tim and John and Heritage Research Associates? Do you think they are likely to become the "most talked-about research firm in the world"?

4. Consult the MRA Code of Marketing Research Standards. Are there any standards that back up your answers to question 3?