Assignment:
Read the case study titled Bellmore Heating Oil. Answer the following questions:
a. What should the price of a gallon of fuel oil represent to a customer? What do you get for that price?
b. What are the benefits and risks to the customer should they elect to participate in the guaranteed price program? Is it a fair program? Why or why not?
c. What is the ethical requirement for a dealer to rebate some or all of the price difference when the price goes below that which was mutually contracted to by both the dealer and customer?
d. What should Bellemore's management do relative to matching the rebate? How would you approach this if you were at Bellemore?