Question

read the case between pepsico and john leonard and kindly answer  the following questions:

John Leonard, a 21-year-old business student, called PepsiCo and was told he would need to drink 16.8 million cans of Pepsi in order to obtain the required points. He was also told that he had the option of buying PepsiCo points for 10 cents each. Leonard developed a pool of investors (Pepsi drinkers) and delivered 15 PepsiCo points and a check for $700,008.50 for the remaining 6,999,985 points plus shipping and handling.PepsiCo refused to provide Leonard with a Harrier jet because it said the ad was not an offer but a joke. Leonard filed suit but PepsiCo had already filed a pre-emptive suit asking that Leonard's suit be dismissed and declared frivolous and that PepsiCo should be reimbursed for its legal expenses.

• What is unethical in this case between pepsico and leonard?
• How was the unethical behavior justified between pepsico and leonard?
• Would you have made the same decision in that situation if you where the president at pepsico? Why or why not?
• What decision would you have made if you were in a leadership position at pepsico?
• What could have been done to prevent this situation from occurring at pepsico?
• How can organizations encourage ethical behavior to prevent issues such like this one between pepsico and leonard?

please this is the third time i am posting this question please help me .please solve all the question for me .please.please.please help.

thank you

Answer 1

The advertisement made by PepsiCo and the mention of Harrier jet as a fanciful addition to make the ad more entertaining is an unethically practice undertaken by PepsiCo. PepsiCo by involving Harrier jet in its advertising has misguided or mislead the customers by giving them unrealistic goals and rising their unreal expectations. Moreover the advertisement by involving such items is involving into bluff advertising which itself is an unethical practice.

The unethical behavior was justified by declaring the advertisement was not an offer but a joke . PepsiCo defended that the advertisement was meant just to increase the fascination and attraction among customers and was not expected to be taken seriously. PepsiCo justified this unethical behavior by outlining that Harrier Jet was not the part of offer , nor was it included in the prize catalogue.

No if I was at thr position of President at PepsiCo I would have not encouraged the marketing and promotion department to indulge into bluff marketing by advertising any unrealistic or unattainable thing in it , because I would gave considered such behavior as deceptive right from begining.

If I was in a leadership position at PepsiCo I would have ensured that advertisement reflected only realistic and genuine offers and did not mentioned anything which could have lead to such great confusion or unfair claims and lawsuits.

To prevent this situation from occurring at PepsiCo it should have kept its advertisements and offers authentic and genuine and should have not indulged into bluff marketing which made it to receive such frivolous claims from Leonard and also would have saved it from bearing legal expenses.

The organisations in order to encourage ethical behavior to prevent issues such like this one taken place between pepsico and Leonard should base its policies and offers based on realistic and ethical principles and values so as to prevent deceitful and mis presented information. The organization should be more careful while forming any promotional strategy and investigate the possible consequences that could be associated with its offers or policies. It should prevent such frivolous acts through staying unambiguous, clear and authentic in its advertisements to avoid misconceptions or intentional consequences due to loop holes which could be taken advantage of.

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