The value a buyer gives for the same product, may differ based on the company that produces these products. This is the basic justification why companies are not viewed equally. The value of a product is not only accessed in terms of money, but also in terms of time, energy and psychic cost, spent in acquiring the product. In the past, price for a commodity was decided by negotiation between the buyer and seller. However, with internet marketing, improvement in transparency, large scale retailing, mass manufacturing; companies are adopting the strategy of using fixed prices for their commodities. Each company can have varying prices for the same product or services. (Above the Crowd, 2012)
The internet, has a powerful influence on market pricing strategies. The buyer and seller can negotiate and adjust prices to suit market competition. The final price for the which the product is sold will be decided by the fairness of the deal. It is not always about money. People are willing to pay high prices for products, considering its desired and perceived benefits. Consumers show preferences for brands, even if these brands do not quote the lowest price. The ethical dilemma of attributing different weighting to different companies is discussed in this paper.
The sensitivity of arriving at an ethical decision on the inequality that exist among companies is affected by the perceived significance of the problem. The goals of most business enterprises, is to become superior and dominate the market. This can only happen if the company employs strategies that will help its competitor. Even companies that produce the same product, may differ in their customer services, and this can affect customer choices and prices. Companies that can invest, huge capital in product promotion and customer services, are more likely to become superior than companies with low capital. In addition, the rewards and punishment associated with a company’s decision will also affect its perceived ethical sensitivity. (Above the Crowd, 2012)
A company that has a monopoly in an essential commodity can dominate sales and request high prices for the products. However, the law of a country restricts price rise, with the intension of avoiding exploitation and maintaining stable economy. Above all, intension is an important factor, in deciding the correctness of ranking companies for their superiority over each other. If a company employs unethical ways to increase its superiority, by using money to control the market or through lobbying; it can affect the justice rendered to another company. As per Kantian ethics, the end result justifies the means. This may not be correct in all situations. Hence, the correct ethical decision needs to be made considering the sensitivities of the situation and the stakeholders.
One important reason for grading companies as unequal, is the enhanced opportunity created by an open market. When the number of suppliers is high, consumers are given the opportunity to choose from many suppliers. At a given time, a customer chooses only one service over the others, and this does not necessarily mean that others are inferior. It simply means that these companies did not win the selection. When production is high and demand is same, high production does not mean high sale. Other factors like innovation and efficiency, gives the company an upper hand above others. (Above the Crowd, 2012)
Inequality among companies is particularly evident in talent markets. When there is scarcity of talented individuals, there is no clear grading of superior or inferior workforce. On the other hand, when there is an excessive supply of talented individuals, Human Resources manager want to screen and select the most superbly talented. The factors that determine superiority will vary from company to company. (George, 2007)
References:
Above the Crowd,. (2012). All Markets Are Not Created Equal: 10 Factors To Consider When Evaluating Digital Marketplaces | Above the Crowd. Retrieved 22 January 2016, from http://abovethecrowd.com/2012/11/13/all-markets-are-not-created-equal-10-factors-to-consider-when-evaluating-digital-marketplaces/
George, L. (2007). Excuse me, your job is waiting. Charlottesville, VA: Hampton Roads Pub. Co.
