Ron Kapra is sales manager at Electra Toy Company, a retail toy store specializing in electronic games. Ron's brother-in-law Jerry works for the company that manufactures the Lasertron electronic game. Jerry mentioned to Ron that the company is coming out with the Lasertron II in three months. However, it will not be announced to retailers for another two months. Lasertron II will have advanced technology over the present model. The new game cartridges will not be compatible with Lasertron I. Once Lasertron II comes on the market, consumers will want it and not the present model. Jerry explains that for any of the present models the retailer returns after the introduction of Lasertron II, the manufacturer will refund to the retailer the retailer's original cost of Lasertron I. The Way to Make Extra Sales Kapra has decided to run a special sale offering 20 percent off the regular price of Lasertron I. With 1,000 cases in stock, Ron wants to sell as many of the present model as possible to his customers. Then when the new model comes out, the same customers will come in and purchase Lasertron II. This will greatly increase sales, Ron feels. Salesperson Is Unsure Bill Corrington has been a top salesperson with Electra Toy for about two years. Although excited about the new model, Bill questions Ron's idea. Bill feels his customers trust him. If he sold them Lasertron now and the new model came out in a few months, customers would be upset with him. Bill feels this is no way to treat customers. However, Ron sees nothing wrong. "The loss of a few customers will be offset by the increase in sales," says Ron.
Questions
1. What are the ethical considerations, if any, in this case?
2. At what level of moral development are Ron and Bill operating in this business situation? Explain your answers.
3. What would you do if you were Ron?
4. What would you do if you were Bill?