How would this behaviour affect customers? How might customers attempt to protect themselves against this behaviour? How would this behaviour probably affect profits and employment in the automotive service industry?
How would this behaviour affect customers? How might customers attempt to protect themselves against this behaviour? How would this behaviour probably affect profits and employment in the automotive service industry?
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Transcribed Image Text:Required:
1. How would this behaviour affect customers? How might customers
attempt to protect themselves against this behaviour?
2. How would this behaviour probably affect profits and employment in
the automotive service industry?
![Exercise 3: Ethics in Business
Consumers and lawyers in more than 10 regions accused a prominent
nationwide chain of auto repair shops of misleading customers and selling
them unnecessary parts and services, from brake jobs to front-end
alignments.
"In the face of declining revenues, shrinking market share, and an
increasingly competitive market
performance of its auto centers
given product-specific sales quotas- sell so many springs, shock absorbers,
alignments, or brake jobs per shift- and paid a commission based on sales
[F]ailure to meet quotas.could lead to a transfer or a reduction in work
hours. Some employees spoke of the "pressure, pressure, pressure" to bring
in sales. This pressure-cooker atmosphere created conditions under which
employees felt that the only way to satisfy top management was by selling
products and services to customers that they didn't really need.
Suppose all automotive repair businesses routinely followed the practice of
attempting to sell customers unnecessary parts and services.
management attempted to spur
The automotive service advisers were](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F425ba983-086b-45e9-a906-3125faddb23e%2Fcea3984d-7d3a-45e7-a29f-fce262afd9be%2Fv1kcxt8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 3: Ethics in Business
Consumers and lawyers in more than 10 regions accused a prominent
nationwide chain of auto repair shops of misleading customers and selling
them unnecessary parts and services, from brake jobs to front-end
alignments.
"In the face of declining revenues, shrinking market share, and an
increasingly competitive market
performance of its auto centers
given product-specific sales quotas- sell so many springs, shock absorbers,
alignments, or brake jobs per shift- and paid a commission based on sales
[F]ailure to meet quotas.could lead to a transfer or a reduction in work
hours. Some employees spoke of the "pressure, pressure, pressure" to bring
in sales. This pressure-cooker atmosphere created conditions under which
employees felt that the only way to satisfy top management was by selling
products and services to customers that they didn't really need.
Suppose all automotive repair businesses routinely followed the practice of
attempting to sell customers unnecessary parts and services.
management attempted to spur
The automotive service advisers were
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