Part 2: Rational Decision Making - Ethical Dilemma

Introduction & Problem Identification

My topic is called "Unethical Sales Presentation Techniques" in the Marketing Cases category. Here is the original scenario:

"In an effort to finalize the sale of an expensive, out-of-stock television set, an electronics salesperson is considering a strategy of promising the customer one-day delivery when it will really take at least a week to have the set shipped from the factory."

In brief, an electronics salesperson was facing a challenging situation while trying to close a sale for an expensive, out-of-stock television set. By promising one-day delivery, the salesperson has made a successful sale, satisfying both the customer and the salesperson's objective. However, this goes against the principles of honesty and integrity in business, which could potentially lead to negative consequences in long term.

Decision Criteria

  • Honesty and Integrity (Weight: High)
Although in short term, the salesperson has made a successful deal, it takes into account the long-term impact on the customer's trust and the reputation of the store. If the customers figured it out, they could give negative comments on the store, which would damage the store's reputation dramatically.
  • Customer Satisfaction (Weight: High)
This criteria considers the customers' satisfaction for timely delivery and their overall experience with their purchases. Meeting customer expectations is essential for building their loyalty.
  • Store Reputation (Weight: High)
This criteria evaluates the potential impact of the salesperson's decision on the overall reputation of the store. A negative reputation can lead to decreased sales, customer loss, and a damaged brand image.
  • Sales Performance (Weight: Low)
This criteria considers the effectiveness of the salesperson in closing deals and achieving sales targets.
While important, this carries a relatively lower weight compared to other criteria.

Generate Alternatives

1. Be honest

Instead of making false promises, the salesperson could choose to be honest with the customer about the out-of-stock situation and the realistic timeframe for delivery. This approach could help maintain the customers' trust and preserve the store's reputation.

2. Provide coupons for the customers' patience

The salesperson could ask the store's manager to provide the customer with coupons for their next purchases. The value of the coupons depend on the time that the delivery would be delayed. This approach could raise the customers' satisfaction and desire to make other purchases. 

3. Offer an upgraded delivery option

This approach is similar with my first approach. However, instead of letting the customers waiting for such a long time, the salesperson could explain with the customers about their delivery policy and politely ask the customer to upgrade to a "express" one.  Additionally, they could also discuss with the providers about the situation, and ask them for a quicker delivery. This in turn, could help the business to decrease their process time of ordering their inventory.

Evaluate Alternatives & Select the Best Alternative

I would say that every alternative could fix all of the criteria of the case. However, the best alternative would be Alternative #3. By approaching this way, it could help the business to maintain its reputation, as well as satisfy both the customer and the salesperson. 

Comments

  1. Jatin DhimanJune 8, 2023 at 8:44 PM

    Your alternate analysis and evaluation show a logical and well-structured approach. You have evaluated the ethical consequences of the scenario, such as honesty, integrity, customer happiness, and store reputation, demonstrating your thorough comprehension of the problem.

    I applaud your consideration of Alternative #1, which emphasizes being upfront with the customer about the out-of-stock situation and providing a reasonable delivery timeframe. This strategy stresses openness and trust, which aligns with your goals of long-term customer relationships and a strong retail reputation.

    Your recommendation for Alternative #2, which is to provide vouchers as compensation for the delay, demonstrates your dedication to client pleasure and loyalty. You acknowledge the inconvenience caused and express your willingness to make apologies by delivering tangible rewards, such as discounts on future purchases. This method demonstrates your commitment to maintaining positive customer interactions and mitigating any negative influence on the store's reputation.

    Furthermore, your choice of Alternative #3, which provides an updated delivery alternative, demonstrates your proactive attitude to fixing the issue. You demonstrate responsiveness and a real dedication to solving customer demands by engaging in a discussion with the customer and exploring viable solutions. This technique demonstrates your commitment to client satisfaction and your desire to keep your store's reputation positive.

    Alternative #3 is the greatest option for you since it corresponds with your values of honesty, customer happiness, and store reputation. You demonstrate your commitment to addressing the issue and meeting customer expectations by actively finding ways to expedite the delivery process and discussing potential solutions with the customer.

    Overall, your study demonstrates a thorough comprehension of the scenario as well as the significance of ethical considerations, customer satisfaction, and store reputation. Your deliberate approach and desire to find a mutually beneficial solution are reflected in the ideas you have presented.

    ReplyDelete

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