Types of Unethical Behavior of Salesperson - Assignment Example

Identify and explain the three main types of unethical behavior and provide an example of each. Without a doubt, direct sales is viewed as a cut-throat profession wherein the salesperson is specially trained to entice the customer into buying the products he/she sells. In the course of enticing the customer, the salesperson may utilize unethical tactics or practices. These tactics and practices include Product-specific sales incentives (PSIs), or "spiffs," offered directly to the sales person by the manufacturer or distributor of a product, selling products which pose harm to the customer and the use of high-pressure sales techniques to convince the customer to buy. First and foremost, the notion of PSIs is one that has been investigated for over fifty years and probes to pose a conflict in the arenas ob business and direct sales. PSIs are exactly what they sound like: they are incentives offered by manufacturers to salespeople. These incentives serve to encourage the salespeople to promote certain products often to the neglect of other competing products. One can clearly see the ethical dilemma posed by PSIs as they are sometimes equated to bribes in that their underlying purpose is to motivate the compensated salespeople to offer advice to a customer that might contradict their true feelings on the product as well as illicit a recommendation that might not have necessarily occurred in the absence of the incentive. If a salesperson is charged with the responsibility of selling a full array of products, how can he/she in good conscious sell products to a client who may be inferior or may not necessarily meet the requirements requested by the customer Additionally, how are we to justify the bias that the presence of PSIs introduces into the selling process. This raises a very prudent concern in that the stakeholders may be given an inaccurate picture of the quality of the product through the use of deceptive sales practice (Radin & Oppenheimer, 2002). Another ethical issue raised within the field of sales is the notion than many salespersons are obligated to sell all of the products carried by a store. In some instances, the salesperson is aware of the fact that the product could possibly pose harm to the customer. In the course of a sale the customer may reveal information to the salesperson which indicates that the product may not be good for the customer. For example, if a customer reveals that he/she suffers from a bad back and would like to purchase a sofa. The store may have only one sofa that fits the customer's need but it may be inappropriate for the his/her bad back. The salesperson may know from first hand experience that the sofa is not suitable for use by individuals with back conditions. Being eager to make the sale, the salesperson may sell it to the customer irrespective of the fact that he/she has this knowledge (Kotler, 2004). Finally, salespersons may utilize high pressure techniques to convince the customer to buy a certain product. This technique may include a gross misrepresentation of the product wherein he/she may try to sell a product which offers a greater return to the store. Essentially, a sales manager may influence a salesperson to sell more of a product because the profit to cost ratio is greater for that product. The high pressure sales technique may also include a reward for choosing a certain product. For example, if you buy a certain brand of cell phones you may get all the accessories free of charge. The cell phone may not be the best bargain but the incentive of new accessories may be a good selling point (Kotler, 2004). Define and provide further explanation of the five variables that affect a salesperson's ability to be viewed as trustworthy by buyers. Explain which variable you feel is most important and why. Five variables that affect a salesperson's ability to be viewed as trustworthy by buyers include: 1. The Reputation of the store-If the store has established a reputation of being trustworthy and having the customer's best interest at heart, then it is very likely that this reputation will extend to all those in the employ of the store. 2. The friendliness of the salesperson-A friendly salesperson is very important in portraying an attitude of trust and likeability. In being friendly, one sees a sales person as being able to be trusted. This is a very tricky notion in that over-friendliness is perceived as being phony and trying too hard to make a sale. 3. The length of the relationship between the customer and the salesperson-Trust is a quality that develops over time and increases or decreases over the course of time. In establishing a relationship built on truthful disclosure, a salesperson ensures that the customer establishes trust. 4. The willingness of the salesperson to sharing relevant information-Another important factor in the establishment of a relationship built on trust is the notion that a salesperson will be truthful and complete with regards to the disclosure of product information. This too is developed over the course of time and works to encourage a customer to continue in the course of building a relationship with a salesperson wherein trust has been established. 5. Similarity between the salesperson and the customer, such as for example, age group, gender, ethnicity-Finally, any similarity between the customer and the salesperson can serve to establish trust. In being able to identify with the salesperson, the customer learns to gain trust by understanding where some of the inherent qualities of the salesperson and he/she begins to feel that the salesperson is trustworthy as an extension of the notion that the customer views him/herself as being trustworthy (Morgan & Shelby, 1994). Explain the importance of trust in building ethically sound business relationships. Discuss why sales professionals are often stereotyped as being unethical and non-trustworthy and the importance of breaking this stereotype. Underlying any relationship is trust. It serves as the cornerstone of both business and personal relationships. When examining the field of sales, trust is often an issue. Salespersons are seen as the most unscrupulous individuals wherein they are depicted as blatantly violating every ethical rule. In the quest for earning a commission, many salespersons often tell the customer what he/she wants to hear or needs to hear in order to close a sale. Over the course of the sale, the salesperson may use unethical tactics. This perception of salespersons proves to be very detrimental to the bottom-lines of many businesses. In keeping with the fact that the stereotypes often hurt businesses, it is prudent to transform the image of salespersons. This can be done by ensuring that the salesperson is very knowledgeable about the products being sold as well as to be truthful with the customer as the customer will most likely find out when he/she is being deceived. At Studio Productions, some of the work is outsourced and marked up to client, giving a small profit to the company. What are the ethical concerns this brings up and how will you, as a salesperson, handle it One of the gravest ethical concerns posed by this scenario is the fact that the customer may be overcharged by the markup. As a salesperson, I feel that I would be powerless in handling this situation as it was a decision made on the executive level and out of my control. Another ethical concern would be of whether to disclose this information to the customer. Once again, I would not disclose this information to the customer for fear of losing my job. Essentially, in this scenario, I do not see a salesperson as being able to do much in that this situation is one that is just simply par for the course. In dealing with ethical concerns, sometimes it is important to consider what is standard industry practice. Reference Kotler, P. (2004). WRESTLING WITH Ethics. Marketing Management, 13(6), 30-35. Morgan, R.M. and Shelby D.H. (1994). The Commitment-Trust Theory of Relationship Marketing. Journal of Marketing, 58, 20-38. Radin T.J & Oppenheimer R.J. (2002). The Myth of the Salesperson: Intended and Unintended Consequences of Product-Specific Sales Incentives. Journal of Business Ethics, 36(1-2), 79-92. 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