14-29 Ethics Many salespeople, especially those that sell financial products suc
ID: 381647 • Letter: 1
Question
14-29 Ethics Many salespeople, especially those that sell financial products such as life insurance or annuities, earn their salary or a portion of their salary based on the product(s) they convince you to purchase. In addition, buyers are often uneducated about how the sellers make their money and about the product(s) themselves. What are the ethical obligations the seller has toward the buyer? Should the salesperson disclose how he or she earns his or her money? Is it ethical for a salesperson to try to sell the buyer a product that the salesperson receives a higher commission on? What responsibility does the buyer have in such situations?
Explanation / Answer
Ethical obligation that a seller has towards the buyer include:
1. Give complete details of the product
2. Not dupe the customer of his hard earned money
3. Not cheat him, if he is not educated enough in the product
4. Explain the pros and cons of taking the product
5. Don't influence them into buying, let them buy following your convincing proposition.
It is not necessary to disclose your trade secret to the buyer. They aren't even concerned. All they need is value for their money. If you can give them this, nothing like it.
It is the priority of the seller to earn more revenue for the organization and higher earnings for himself. If he sells a such a product to a customer who is in need of it or the salesperson has created a demand for the product by convincing the customer after explaing every pros and cons of investing in the product, then it is ethical. This should be borne mind that you show the customer otehr alternative products too and let them decide.
The buyer has the following responsibilities:
1. Be attentive and understand the product
2. Ask relevant questions.
3. Decide which product to but, don't let other's influence you.
4. Say no, if you don't need one.
5. Asl for alternative options and bargain
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