Fingerhut Pricing Strategy - Essay Example

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In terms of modern globalized world, there are many businesses, which function without any respect paid to the interests and concerns of the poor or underprivileged people…
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Fingerhut Pricing Strategy
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Download file to see previous pages There was even a lawsuit against the company and we can claim that this company needed corrections of its policies in the international business context. Fingerhut's price strategy was the following: no down payment was required. It comprised cash price in addition with shipping and handling prices. Therefore, pricing strategy at Fingerhut Company is considered from different perspectives, but the main intention is to show the relevance of the company’s strategies in the international business market. Pros and cons of Fingerhut Price Strategy Poor customers were the main target for the company and the company provided them with credit as a perfect option. Consequently, Fingerhut Company was blamed for aggressive behavior towards poor clients (i.e. the Company exceeded effective interest rate and was targeting on poor people through misleading advertising campaign). From one perspective, customers were offered an opportunity to obtain goods on credit under conditions of good pricing strategy. In accordance with Crisp, there was a need to increase an option of freedom of choice for the customers, because advertising does not override the autonomy of the customers. Moreover, the company had to develop persuasive advertising on the basis of objective ideological goals. Crisp also claims that people give a chance for the marketers to be manipulated without their own consciousness. In case clients are manipulated, there is a diminution of autonomy (Donaldson and Wehane 2007, p. 507). Therefore, we may claim that Fingerhut’s pricing strategy restricted autonomous desires and consumers choices. Prahald underlines the main concern of the companies on poor nations and poor people. Prahald presented the economic pyramid, where it is determined that there are 4 billion of people from the poorest nations and the largest markets are operating with regards to poor nations (Donaldson and Wehane 2007, p. 575). Thus, marketers take into account the option of the poor nations to buy more and to have access to traditional markets and goods. Moreover, poor people are pleased with an increased attention from marketing directed on their needs and they consider the options, which were previously available for rich people. The main concern for the firms is to build trust between the firms and BOP consumers. Poor people are very brand conscious and very value conscious as well. Conclusion Brenkert underlines a necessity for guarded trust for Fingerhut's company and he defines that the Company lacked considerations about differences in values and motives in the market (Donaldson and Wehane 2007, p. 116). With regards to international business ethics, the main attention of the firms should be focused on commonality of values and motives, consistency of behavior, openness, reputation of the company etc. Therefore, the claim by Prahald and his attention focused on the inconsistencies of the firm’s concerns about the needs of poor people is correlated with Brenkert claim focused on the necessity for consistent international policies in terms of international business ethics. In case Prahald’s claim is chosen as the leading one for further discussions about firms pricing strategy development, then under conditions of international business, marketers should take into account consistent and various needs of poor nations. Moreover, these nations should not be perceived as nations, which are unable to pay for their needs and to buy the goods they want. Unlike Crisp, who underlined that autonomy of poor people is restricted and their conscious is limited by the marketers, the vision of Prahald is more integrative. Case study about rain forest in Guyana Rain Forest Introduction ...Download file to see next pagesRead More
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