Fingerhut Pricing Strategy - Essay Example

Fingerhut Pricing Strategy Introduction 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. Fingerhut Company exploited the poor people and developed its advertising campaign, basing on fraudulent ads. 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 Study about rain forest implies deep considerations about the benefits of environmentally sound policies and it is clear to think, whether the benefits gained from these policies are much higher than costs spent. In the case study, Guyana's President was offered money and investment in turn for his forests management in the search for carbon. This market is rapidly developing nowadays. Whether rain forest is the tool for dealing with climate change is still a challenging question to be answered. Rain forest is a tool for climate change reduction or a mechanism of enrichment? Therefore, in the case study it is claimed that rain forest is a global asset to fight against the climate change. On the other hand, it should be noted whether increase of carbon markets even in spite of its relevance as dealing with greenhouse emissions is a relevant issue. Rain forest concern is only one of the numerous cases in the modern globalized world, when the wild nature is exploited in the name of profits gaining. There is a hidden intention to extend the borders of carbon markets and thus reduce greenhouse emissions, but in reality, it is not claimed that there is a high degree of danger because of rain forest destruction in the name of carbon extraction. The authors of the case study question whether it is a fair mechanism against climate change. Consequently, in the modern globalized world with high speed developments in different industrial fields, there is a need for investors to make investments in green-technology projects. Kelman suggests making cost-benefit analysis of environmental projects (Donaldson and Wehane 2007, p. 543). In accordance with him, in the sphere of environment, there is a need to evaluate the benefits of the right decision, which should overweigh the costs. Moreover, it is relevant to claim that contemporaries are dealing with overconsumption and there is a need to limit consumption from destruction. The main concern of McDonough is based on Thomas Jefferson’s claim, who underlined that the earth belongs to the living beings (Donaldson and Wehane 2007, p. 575p.548). In case the governments of different countries are licensing regulations on emissions, they are licensing killing of living creatures. Therefore, the modern humanity is living under conditions of a threat for ecosystems caused by humans. The latter scientist underlines the necessity for integrative thinking for development of environmentally sound policies. There is a need to eliminate the concept of waste; to work with current income and not rely on the future; to celebrate differences is another option required for the contemporaries. In accordance with McDonough, there is a need to develop some policies, which are directed on something that produces oxygen, fixes nitrogen, distills water, make complex sugars and food, and create microclimate. Therefore, why to put a stake at risky processes introduced in the rain forests, when it may be more relevant to invest in environmentally sound technologies. Conclusion Brenkert would consider McDonough’s considerations in a more diversified context. It is a well-known fact that modern globalized world is full of various perspectives and there are many ways for development for different industries. The context of environmental advancement is the most controversial one in the modern world, because wild nature is exploited by the contemporaries to such an extent that it is almost impossible to preserve its purity and virginity. There is a need to redirect concerns of humanity and modern businesses from exploiting wild nature and to focus more on development of strategies favorable for environment and not destructing it. Works cited Donaldson, Thomas and Wehane, Patricia. Ethical Issues in Business - A philosophical Approach.8th Edition, Prentice Hall,2007. Kline, J. M. Ethics for International Business - Decision Making in a Global Political Economy. 2nd Edition, Routledge, 2010. Read More