Gaga at EEC requested Rihanna to help sell a new fax machine. Due to a technological innovation, EEC can create the best fax machines. Rihanna and Gaga are confident. Due to its successful debut, Gaga has been promised an enormous promotion. Lee Minho, a competitor, plans to produce a new high-quality fax machine before EEC. Gaga may switch to Lee Minho if it delivers better copy quality or other new features. Gaga needs this information immediately because he must give final manufacturing specs in a week. In addition, Lee Minho will be ready before EEC, so he's under pressure. Gaga asks Rihanna to call Lee Minho pretending to be a customer because

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Gaga at EEC requested Rihanna to help sell a new fax machine. Due to a technological innovation, EEC can create the best fax machines. Rihanna and Gaga are confident. Due to its successful debut, Gaga has been promised an enormous promotion.

Lee Minho, a competitor, plans to produce a new high-quality fax machine before EEC. Gaga may switch to Lee Minho if it delivers better copy quality or other new features. Gaga needs this information immediately because he must give final manufacturing specs in a week. In addition, Lee Minho will be ready before EEC, so he's under pressure.

Gaga asks Rihanna to call Lee Minho pretending to be a customer because he can't think of another way to get the information he wants swiftly. When she visits Rihanna's office, the Lee Minho sales agent will ask for copy-quality Jackyples and learn about product features, price, advertising plan, etc.

Rihanna isn't comfortable with it, so she tells Bob. Bob doesn't want his company to be renowned for doing this, but he agrees with Gaga.

To him, it is not illegal because trade secrets would not be stolen; it is Lee Minho's responsibility to develop security procedures to prevent competitive product information from leaking before the product is released; sales representatives are used to non-productive calls and Rihanna may be a legitimate buyer in the future; and the company cannot be held accountable. Bob thinks Rihanna should call Hyun Bin until she can decline Gaga's request.

 

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Analyses the ethical issues in this case.

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