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3 Jul 2019

Why do you think ethics are important in research? Most of us, when researching a topic, simply visit the library or sit down to our computers and begin researching. What does ethics consideration have to do with that?

Answer needs to be in your own words, no copy and paste, will give credit soon as its answered, thank you.

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Elin Hessel
Elin HesselLv2
5 Jul 2019

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Please do not copy and paste, use your own words. I will check with google before I award points.

Please give me your opinion on the following topic with a couple sentences. Thank You

Marketing research drives markets, plain and simple. Proper marketing research directly influences an organization's sales and revenue. Every business starts off with the intention to offer a certain product or service in a certain way. The goal of marketing research is to determine whether or not a company is providing the best product to the largest number of consumers. Through marketing, an organization may find that their services are better suited for a different demographic or that they should provide said services in a different manner to maximize the number of consumers their services reach. If/when the proper research is done businesses can maximize profits while developing new products as well as promote their current products in the most advantageous of ways.

So what are the ethics involved with using numbers to make our point even when we know things could be seen differently if we presented it a bit differently? Remember, morals are what we know about right and wrong as individuals, ethics is the systems of formal and informal rules society adopts for the application of morals. (Example, most of us would agree that killing a human is morally wrong, however, the ethical system says it is okay to kill in self-defense, war, and some other situations.)

Yi really wants a car but her credit is pretty poor and she doesn't make much money. Both of those make a new car impossible for her. Instead, she finds a used car seller who offers credit to anyone and a no down payment deal. She knows that they are charging more for the car she wants than what she would pay if she bought it with cash from someone selling their own car but she can get credit. The deal sounds really good. The car is being sold for $9,995 with no money down. Unfortunately, her interest rate is going to be 18% for the five years she has the loan. By law, all of this has to be in the loan document but the salesperson will focus on the no money down, easy credit, and the $9,995 car is much cheaper than what she could get new.

Yet, just with simple interest calculations, Yi's monthly payment will be $253.81 and her total cost for the car will be $15,228.60.

If she simply saved that same payment for four months and put $1,000 down, she would likely qualify for a lower interest rate and could either get a lower monthly payment ($186.72) or she could buy a $13,000 car for the same monthly payment.

Is there a difference between what you're willing to present as ethical to a consumer versus what you would consider ethical if a salesperson did it to you? At what point do you feel unfairly manipulated by numbers? How much should we trust number-based evidence? How do we know we are being manipulated fairly or unfairly?

View the video transcript below and share your thoughts on the economic concepts that you believe are applicable.

Question# 1. Why does a firm have to posses market power in order to raise prices.

How to Raise Prices Without Losing Customers

JJ RAMBERG, anchor:

With gas prices soaring and the economy tightening, you may think it’s not possible to charge your customers more. But, it turns out you can successfully raise prices without driving those customers away. Bob Prosen runs the consulting company, Prosen Center for Business. He’s helped business leaders rapidly increase performance, productivity and profits, and he’s also author of the book, “Kiss Theory Goodbye: Five Proven Ways to Get Extraordinary Results in Any Company.” Bob, welcome.

Mr. BOB PROSEN: Thank you. RAMBERG: So, if you’re going to raise prices on your customers, one of the things you say is don’t surprise them. So, how do you give them warning?

Mr. PROSEN: Well, our customers are very important to us, lets not surprise them. Let’s let them know in advance that prices will increase. But, it’s important to explain to them in their language as to why prices are increasing. For instance, if its fuel surcharges, they’ll understand that. But its important we put it in their language so that they, in turn, can pass that along and plan for it in their own business.

RAMBERG: So, a lot of times when people are paying more, they expect to get more. So, you should communicate increased value I assume. But is saying, um--gas prices are going up for me, is that uh--the same as saying, you’re going to get more for your money?

Mr. PROSEN: No, definitely it’s not. In fact, the equation for value is benefits plus price. So, if prices are going to go up we have to have increased benefits for our customers. So, we can do things like under promise and over deliver. Give them a little bit more. Understand their customer’s customer. So that when we provide our services to them, they’re customized for our customers. They see more value, we understand their business, and therefore they’ll be more appreciative of what we do and less sensitive to price increases.

RAMBERG: That seems to--to follow into your next point, or go right into your next point, which is, track the quality of your products.

Mr. PROSEN: This is absolutely critical, and we can track the quality of our products many ways. Customers call us, complaints, warranty, rework. If we’ll deal with that, capture that, and inside of “Kiss Theory Goodbye” I teach business people how to reduce these problem occurrences and increase the quality of their product. You do it for two reasons: One, customers like us a lot more when things work the way they’re supposed to; and our cost structure goes down therefore maybe we don’t have to increase our prices as much and we can be more competitive.

RAMBERG: And then, also, relationships matter.

Mr. PROSEN: Oh this…

RAMBERG: So, if you have a good relationship, you can do more within that relationship.

Mr. PROSEN: Oh, definitely. People like to do business with people they like. So, lets make sure we stay in touch with our clients. Customize what we touch them with. You know, for instance, when I travel and I deal with business people, I always carry thank you notes in my briefcase. When I’m finished, I send them a note. It’s a rarity these days to even get a thank you note.

RAMBERG: Yeah, it absolutely is. So, about how much can you raise prices by? Can you suddenly figure out that your costs are gone up so much because of energy prices, or food prices, or gas prices, whatever it is, um--and raise it by 50%? Should you do it incrementally? Should you do it all at once? How does it work?

Mr. PROSEN: Yeah, that’s a great question. It depends on what industry you’re in. It depends on what you customers are doing. It depends on a number of things that determine how much, and when, and the frequency of our ability to raise prices. Therefore, what I always recommend to business leaders is work on your cost structure; make sure you’re efficient and effective. Keep your costs as low as you can. Therefore, you can be more competitive on your pricing. Sometimes, you have to pass along the price. Other times, try to absorb what you can through improved efficiencies.

RAMBERG: Should you be looking at your competitors and how much they’re charging?

Mr. PROSEN: Yes, you should absolutely be looking at your competitors. We always want to know what they’re charging. And by the way, we want to differentiate our products and services from our competitors. And, if we can prove a higher value by dealing with us versus our competitor we should be able to articulate that, and we do it based on facts because we know what’s going on in the industry.

RAMBERG: Alright, Bob I know a lot of people are thinking about raising prices so thanks for giving them some tips on how to actually do it.

Mr. PROSEN: My pleasure.

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