NAME: RITIKA SINGH

ENROLMENT ID: 20131156

BBA 3rd YEAR (VI SEMESTER)
DIV: A

CSR AND ETHICS IN BUSINESS

ASSIGNMENT: 1
CASE STUDY: INCREDIBLE SHRINKING
POTATO CHIP PACKAGE

SUBMITTED TO: MS. ANKITA

1
Q.1) What are the Ethical Issues?

• Are consumers deceived, ie., misled by [downsizing]?

when consumers do realise that a product has been downsized, they
are often disappointed, and feel deceived. As a subtle means,
package downsizing therefore has the potential to mislead
customers in the buying process due to an unfavourable balance of
information within the dyad. This could give rise to serious moral and
ethical consideration. The analysis indicates that package
downsizing, as it is practiced by the marketers and sellers today, is
unethical as far as the consumers are concerned.

• What is the marketer's duty to inform customer about price and

size changes?
Informing the customer in advance and the reason behind it is the
least thing that the y can do for their customers if there’s any change
in price or size of their product. Being transparent and honest about
the change may turn out beneficial to them. Also listening to the
customers voice and paying attention to it. Plus, giving some time
and space to their customers so that they can adjust to this new
changes. Like not increasing the price or size of their product
overnight, give enough time. Also assuring them that they are paying
price worth the quality.

• Should it be the buyer's responsibility to check weight, price,

quantity, and serving size?
Somewhere it should be the buyer’s’ responsibility to check the
weight, price, quality and serving size to some extend as they hold
some responsibility too but then it’s completely on the seller as they
should earn the customer’s loyalty and trust to them and make them
sure of the product so that they don’t have to check before buying
the product as it’s quite irritating and it shows that the company
lacks behind.

2
• How can Julie compete if most or all of he competitors downsize
their products?
Julie can compete by changing her strategies i.e., providing better
quality products and cutting down the price in limitation, focusing on
the advertisement of the product and managing marketing
campaigns so that they can spread the awareness of this change and
the reason behind it. Then, She can ever do partnership with another
firm so that they can sell their products together in affordable price
which would attract customers or giving some freebies with it so that
you can balance out without compromising with your firm’s finance.

• How can Julie achieve an acceptable balance between her need to

make a profit for her company
Julie can achieve an acceptable balance between her need to make
profit is by cutting down on the price, or else can cut down on her
company’s workforce or laying off the extra employees which will
help her in regaining the profit.

Q.2) What Actions Should Be Taken?

Julie should take the decision of downsizing and package shorting as

at times it can be beneficial for the company too if practiced in a
correct way and can help her company to regain the profit.

This situation is well suited for Utilitarian theory as it causes

unhappiness among the customers if downsizing is practiced and if
not then it can cause harm to the company, it’s investors and the
employees

3
Q.3) What are the possible alternatives

• Downsize the product so as to maintain margins

• Accept a smaller than 5 percent margin by either raising the price

slightly and or downsizing the product slightly.

• Suggest flagging the package with“Reduce." or some similar

wording for six months following
the downsizing.

Q.4) What are the ethics of the Alternatives?

• Downsizing the product and cutting down on price of the product,

and cutting down on company’s workforce can be beneficial to the
larger number of people as it will help in keeping the existing
customers attracted as the business is not a monopoly one and can
also be beneficial to the company investors and employees too.

• Do the benefits of maintaining profits outweigh the costs of losing

consumers goodwill?
Yes until and unless your company is a monopoly business, If your
customers are not satisfied, you won't have to worry about profits.
They will leave you for another company who will meet their needs.
It's just as important that your employees are satisfied. If you treat
them right, they will insure your customers are treated the same
way. Solving pain points for customers should take the pressure of
pricing and lead to higher margins