Ethics In Dealing with Customer Services

Numerous ethical situations may arise in dealing with customers. Some common problems faced by sales personnel include bribes, misrepresentation, price discrimination, tie-in sales, exclusive dealership, and sales restrictions. A brief summary of each of these problems is now given:

Bribes: A salesperson may attempt to bribe a buyer. Buyers may ask for cash, merchandise, or travel payments in return for placing an order with the salesperson.

Misrepresentation: Buyers often depend heavily on the technical knowledge of salespeople along with their professional integrity. Yet, sales managers and staff find it difficult to know just how far they can go with well-intentioned sales talk, opinion, and promises. They do not realize that by using certain statements they can embroil their companies in a lawsuit and ruin the business relationship they are trying to establish.

Price Discrimination: Some customers may receive price reductions, promotional allowances, and support while others do not. Price discrimination refers to selling the same quantity of the same product to different buyers at different prices. This can be illegal if it injures or reduces competition. It is certainly unethical and has no way to treat customers.

Tie-In Sales: To buy a line of merchandise, a buyer may be requiring buying other unwanted products. Is this good business?

Exclusive Dealership: When a contract requires that a wholesaler or retailer purchase products from one manufacturer, it is an exclusive dealership. If it lessens competition, it can be a problem.

Reciprocity: Reciprocity refers to buying a product from someone if the person or organisation agrees to buy from you. The salesperson says, “I can get my company to buy all of our office supplies from your company if you buy lighting fixtures, supplies and replacement parts from us.” Is this a good business practice?

Sales Restrictions: To protect consumers against the sometimes, unethical sales activities of salespeople, there is legislation that has adopted a cooling-off period of at least 3 days.

Click here to view a video that explains ethics in dealing with customers.