Gaga at Eron Equipment Corporation (EEC) asked Rihanna to assist in the development and marketing of a new fax machine. Due to a breakthrough in technology, EEC can now make the highest-quality fax machines currently on the market. Rihanna and Gaga are confident that they've found a winner. As a result of the new product's initial launch, Gaga has been promised a significant promotion.   When Gaga discovers that Lee Minho, a competitor, intends to release a new high-quality fax machine before EEC does, he becomes worried. Gaga may change the EEC machine if the Lee Minho machine offers remarkable copy quality or other new product features. Gaga needs this information right away because he has to deliver the final manufacturing requirements to the production department in a week. Aside from that, given that Lee Minho will be available before EEC, he's under a lot of pressure.   Rihanna is asked to phone Lee Minho pretending to be a potential customer by Gaga because he can't think of any other method to collect the information he needs quickly. It is expected that the Lee Minho sales representative will ask for copy-quality Jackyples and learn as much about unique product features, price, advertising plan, etc. as possible when she visits Rihanna's office."   It's not something Rihanna is comfortable with, so she confides in her boss, Bob, about the situation. Even though Bob doesn't want his company to be known for doing things like this, he doesn't see anything wrong with Gaga's request.   To him, it is not illegal because trade secrets would not be stolen; to him, it is Lee Minho's responsibility to develop security procedures to prevent competitive product information from leaking before the product is released; to him, sales representatives are used to non - productive calls and who knows, Rihanna may be a legitimate buyer at some point in the future; and to him, it is impossible for the company to be held accountable. Bob feels Rihanna should call Hyun Bin unless Rihanna can come up with a valid excuse to deny Gaga's request.   QUESTION :- Analyses the ethical issues in this case.

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 Eron Equipment Corporation (EEC) asked Rihanna to assist in the development and marketing of a new fax machine. Due to a breakthrough in technology, EEC can now make the highest-quality fax machines currently on the market. Rihanna and Gaga are confident that they've found a winner. As a result of the new product's initial launch, Gaga has been promised a significant promotion.

 

When Gaga discovers that Lee Minho, a competitor, intends to release a new high-quality fax machine before EEC does, he becomes worried. Gaga may change the EEC machine if the Lee Minho machine offers remarkable copy quality or other new product features. Gaga needs this information right away because he has to deliver the final manufacturing requirements to the production department in a week. Aside from that, given that Lee Minho will be available before EEC, he's under a lot of pressure.

 

Rihanna is asked to phone Lee Minho pretending to be a potential customer by Gaga because he can't think of any other method to collect the information he needs quickly. It is expected that the Lee Minho sales representative will ask for copy-quality Jackyples and learn as much about unique product features, price, advertising plan, etc. as possible when she visits Rihanna's office."

 

It's not something Rihanna is comfortable with, so she confides in her boss, Bob, about the situation. Even though Bob doesn't want his company to be known for doing things like this, he doesn't see anything wrong with Gaga's request.

 

To him, it is not illegal because trade secrets would not be stolen; to him, it is Lee Minho's responsibility to develop security procedures to prevent competitive product information from leaking before the product is released; to him, sales representatives are used to non - productive calls and who knows, Rihanna may be a legitimate buyer at some point in the future; and to him, it is impossible for the company to be held accountable. Bob feels Rihanna should call Hyun Bin unless Rihanna can come up with a valid excuse to deny Gaga's request.

 

QUESTION :-

Analyses the ethical issues in this case.

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