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Misleading Sales Pitch

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You are observing a meeting between Milhouse (one of your co-workers) and a salesman who is trying to sell an additional part to a machine that your company recently purchased. The salesman is well into his routine, and has already gotten your co-worker to admit that a quality product is of utmost importance to the future of the company. The salesman approaches the topic of price with great skill. "Although this investment may seem substantial at first glance," he admits, "with our extended payment plan, this part will cost you less than 40 cents a day. Why, that's less than a can of soda! Wouldn't you say the future success of your organization is worth more than a daily can of soda?" Having never thought of it in just that way, Milhouse decides to purchase the part. (Working Psychology, 2003).

In order to prepare for future situations in which you have to make decisions such as these you go back to your office to evaluate the decision and in particular to do the following:

- Identify how Milhouse "framed" his decision.
- Explain how an alternative "frame" could have resulted in a different decision outcome. What factors would led to an alternative framework?
- What are the implications of "framing" on our judgments and on our attempts to influence others? Are there moral considerations? Why or why not?

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Identify how Milhouse "framed" his decision.

The frame is a conceptual structure involved in thinking. Milhouse has been able to frame his decision as one that will ensure the future success of his company. Milhouse has admitted that his company needs excellent products to ensure that his company's future is successful. The company sales man has also framed the price of the additional part as costing less than 40 cents a day under the extended payment plan. In the mind of Milhouse this price has been framed as negligible and so acceptable as a cost of ensuring excellent quality products and the future of the company. Milhouse has been led to develop this frame by the salesman. The final frame in the mind of Milhouse is that the purchase of the additional part for the ...

Solution Summary

In about 525 words, this solution describes an external sales person's influence on Milhouse and his decision to purchase the offered product. It also explores how an incorrect purchase of a machine could adversely affect the company's future.

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Advertising is a significant tool that can be a cross between success and failure with many organizations. Over the years consumers have been mislead by organizations that failed to comply with regulations and illustrate the organizations true agenda and purpose for obtaining consumers (e.g. meeting a quota demand for the day or the month as dictated by the company or meeting consumer needs), thus leaving consumers with excessively high interest rates and causing them to pay for a service the consumer did not agree to in the first place however due to the fact that the fine print was too small the consumer may have overlooked the most pertinent information. In some cases, consumers were steamrolled by an aggressive, fast-talking sales agent that didn't take "no" for an answer, and the consumer felt persuaded and obligated to enter into an agreement only to find out that the agreement had a lot of stipulations and penalties that were not otherwise explained at the beginning of the sales pitch and/or presentation.

Advertising is a significant tool that can be a cross between success and failure with many organizations. Over the years consumers have been mislead by organizations that failed to comply with regulations and illustrate the organizations true agenda and purpose for obtaining consumers (e.g. meeting a quota demand for the day or the month as dictated by the company or meeting consumer needs), thus leaving consumers with excessively high interest rates and causing them to pay for a service the consumer did not agree to in the first place however due to the fact that the fine print was too small the consumer may have overlooked the most pertinent information. In some cases, consumers were steamrolled by an aggressive, fast-talking sales agent that didn't take "no" for an answer, and the consumer felt persuaded and obligated to enter into an agreement only to find out that the agreement had a lot of stipulations and penalties that were not otherwise explained at the beginning of the sales pitch and/or presentation. For example, an individual begins to research various business opportunities over the Internet, he/she stumbles upon a website that may be the answer to his/her prayers. The individual scrolls down to look for where to sign up for the opportunity, he/she then scrolls down further to the bottom of the screen only to find out that in order to begin he/she must sign up for a trial period of seven days for $14.95, after the trial period is up, his/her credit card will be charged $197.95 every month for the remainder of the year. This advertisement is clearly misleading and may even be fraudulent according to the Federal Trade Commission ( FTC), if there was a payment required, it should have been displayed in the beginning instead of in real small print (i.e. two font). As a result of so many consumers becoming victimized by shady business transactions, the Federal Trade Commission and every public entity that has the consumers best interest at heart decided to implement stricter regulations that enables the consumer to remain in control of their information, their decisions, and their privacy. "The FTC's Bureau of Consumer Protection works For The Consumer to prevent fraud, deception, and unfair business practices in the marketplace. The Bureau:

? Enhances consumer confidence by enforcing federal laws that protect consumers.

? Empowers consumers with free information to help them exercise their rights and spot and avoid fraud and deception.

? Wants to hear from consumers who want to get information or file a complaint about fraud or identity theft." (Federal Trade Commission, 2011).

Although the Internet is the gateway for unlocking an individual's entrepreneurial potential, the Internet also opens the door for false advertisement, misrepresentation, and deceptive unethical business practices, in other words, the internet gives new opportunities to scam artists. When in doubt of the legitimacy of any organization consumers are encouraged to conduct research to prevent themselves from being scammed. One real life example comes to mind with this portion of the document is a car dealership several years ago, their objective was to sell cars to consumers with poor, bad, or no credit, they offered good deals for consumers who were struggling to make ends meet.

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