Question
EPS Accounting Services provides accounting application software to their customers using the Internet for a monthly subscription. They entice the customers with a low monthly
EPS Accounting Services provides accounting application software to their customers using the Internet for a monthly subscription. They entice the customers with a low monthly fee for a year where the business data and accounting software resides on the EPS Accounting server. The president of EPS Accounting believes that once the customer begins to use the service, it is difficult to move the data, and it is not compatible with other competitors software accounting systems. In essence, the customer is locked in. After the year is up, the price will be increased to the regular monthly fee.
- Discuss whether the low monthly fee for the first year is an ethical business practice.
- Also, discuss whether customer lock-in is an ethical business practice.
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