Fingerhut

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Fingerhut’s Price Strategy

1. State your final position in this case: Has Fingerhut acted unethically? (Just a brief statement of your position is required here.) (2 marks)
Fingerhut did act unethical. This is because Fingerhut Company exploited the low- income consumers by using unfair and misleading marketing strategies.

2. What are the relevant facts of the case? (Just the facts; no analysis or opinions needed here.) (10 marks) * Fingerhut is a direct-marketing company that sells consumer goods through an array of specially targeted catalogs. * Fingerhut targeted customers with household incomes falling in the lowest one-third nationally. * Fingerhut customers started using the installment plan to purchase their merchandise. * When purchases came in they received coupons.

* Fingerhut focused on the coupon payment method
* An article in the Star Tribune, drew attention to a lawsuit against Fingerhut that suggested the firm made its profits by exploiting the poor. * Illustrates issues in ethics and management communication * Fingerhut had built an extensive database about their customers including age, marital status, hobbies, number of children, and birthdays. * Fingerhut exploited the low-income consumers by using unfair and deceptive marketing techniques

3. What are the most important ethical principles to be applied in the consideration of the case? (Just clear and separate statements of each principle identified. No analysis, no opinions needed here.) (10 marks) * Keep An Open Mind: The company should have kept an open mind to every consumer they were dealing with this would include consumers with a higher income. * Have Clear Documents: documents to show that low income and high income consumers were the target market * Law Abiding: Fingerhut abide the laws, rules and regulations relating to their business activities. (Jospehson, 2010) * Reputation And Morale: Fingerhut protected and build...
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