Leegin Creative Leather Products, Inc. (Leegin), designs, manufactures, and distributes leather goods and accessories under the brand
Question:
Leegin Creative Leather Products, Inc. (Leegin), designs, manufactures, and distributes leather goods and accessories under the brand name Brighton. The Brighton brand has now expanded into a full line of women's fashion accessories and is sold across the United States in over 5,000 retail stores. PSKS, Inc. (PSKS) runs Kay's Kloset, a Brighton retailer in Lewisville, Texas, that carried about 75 different product lines, but was known as the place to go for Brighton products. Kay's ran Brighton ads and had Brighton days in its store. Leegin's president, Jerry Kohl, who also has an interest in about 70 stores that sell Brighton products, believes that small retailers treat customers better, provide customers more services, and make their shopping experience more satisfactory than do larger, often impersonal retailers. In 1997, Kohl released a new strategic refocus for Brighton by explaining: "[W]e want the consumers to get a different experience than they get in Sam's Club or in Wal-Mart. And you can't get that kind of experience or support or customer service from a store like Wal-Mart." As a result, Leegin instituted the "Brighton Retail Pricing and Promotion Policy," which banished retailers that discounted Brighton goods below suggested prices. The policy had an exception for products not selling well that the retailer did not plan on reordering. The established prices gave its retailers sufficient margins to provide customers with the quality service central to Brighton's strategy................
Discussion Questions
1. Is it fair for some stores to carry Brighton products at a discount but not provide the service and ambience that the company is seeking for its products?
2. Do deep discounters benefit from the services and information provided at stores that do not do the deep discounting?
3. What is the role of the customer as stakeholder in your ethical analysis?
Step by Step Answer:
Business Ethics Case Studies And Selected Readings
ISBN: 9780357453865
9th Edition
Authors: Marianne M. Jennings