Quiz 4: Managing Marketing Information to Gain Customer Insights 

Business

The reputation of Company W is very sound due to its ethical and social measures. The company became able to build this image because of the following reasons: • The business of Company W is focused on helping people to live their life in a better manner. They are not only concerned about their customers and associates but also towards their workers who produce their products. • The main motto of Company W is to provide products at low prices to their customers and greater return on investment to their stockholders. • Company W also works for the improvement of working conditions, environment safety and conservation. The company is a successful one. It started in 1983 and expanded its operations into metropolitan areas. Soon the company expanded its operations worldwide. Company W is a multi-billion dollar retail organization which is very lower in cost. It has around 6,400 stores with total sales of $312.4 billion and net profit of $3.8 billion.

Company BS is an auction company dealing in classic and vintage cars. For an auction company, ethical behavior by all stakeholders is very important so that each one of them receive fair treatment. Company safeguard buyers interest so that they get a fair and clean treatment in the process of auction. Some of the reasons due to which ethical behavior is must for an auction company such as company BS are as following: • Consumers might not know the value of the car until after they purchase it. • In the auction process, the highest bidder settles the price of the product. A false bid may be made to boost the prices of the car. Owners of the car may bid on their car to inflate the price of that car. • The issue of authenticity of the car is difficult to judge as the seller may easily provide false, or have documentation. • Buyers place great value on the cars they purchase. Some spend many years in search of their dream car. Therefore, the buyer is naturally interested in buying a car whose claim turns out to be true. Similarly, the company also safeguards seller's interest. Some of the ways by which the company ensures sellers interest are as follows: • Company insure sellers that buyer has the capacity to pay. • A group of buyers may act in a cartel and may bid down the price of the car and the seller may not get the fair price. These concerns raise the need of some mediator that can insure and safeguard the interest of both the parties. Company BS does the same they ensure that every stakeholder should be informed appropriately with authenticity so that each one can take an informed decision. Therefore, ethical behavior is very important on the part of an auction company.

Social responsibility refers to the obligations to an organization to minimize the negative impact and maximize the positive impact on the society. It works on the effects that are generated from the marketing decisions on society. The word social responsibility includes all the managerial processes that are required to monitor and satisfy the stakeholder's needs and expectations. Social responsibility is important because these activities boost sales by generating publicity positively. The efforts of social responsibility have positive effect on the general public as well as on organization by attracting potential customers, publicity and employees. An organization who conducts social responsibility gets greater commitment from employees which in turn improves their performance.