bgs final report_spa and wellness industry

For smaller spas they resort to using low pricing to

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Unformatted text preview: would only tarnish their image. For smaller spas, they resort to using low pricing to attract 11 Appendix K: Street and online survey Appendix K: Street and online survey 13 Appendix E: Interview with Miss Lim Siew Kuan – customer of My Summer Day Spa 14 Appendix K: Street and online survey 15 Appendix C: Interview with Mr James Tan and Mr Adrian Au, owners of Balik Kampung Spa 12 customers. Subsequently, they try to hard-sell their products and services to customers to increase their profits. In addition, firms like My Summer Day Spa need steady cash flows to sustain business operations. By engaging in hard-selling to bring in more profits, it can prevent the problem not having enough cash flows. Another reason why hard-selling is done is that the salary structure of the workers encourages such behaviour. In order to entice therapists to increase sales for the company, the therapists are paid in commission basis. This encourages the therapists resort to resort to hard-selling methods to earn more money for their personal benefit. It also does not help when these therapists are not taught less aggressive and more professional forms of sales tactics. Ethical Analysis From the perspective of spa operators, they have the right to introduce new and up-to-date products to customers through their personalized service. After all, without any form of promotion, customers would actually be deprived of the knowledge of new products. By providing new product knowledge to customers, it brings about economic benefits to the spa operators. While customers may feel perturbed by therapists’ incessant pressure on them to purchase products, it should be noted that customers themselves have the right to choose whether to purchase those products or not. As such, using the rights method of ethical reasoning, both the rights of consumers and spa operators are both well respected. Nonetheless, hard-selling can prove to be a bane when customers get annoyed, and begin to boycott that particular firm and patronize other competitors. This is one economic cost that spa operators have to bear if hard-selling tactics engaged by the spas go overboard. This situation can turn out to be a rather tricky to resolve because the problem can worsen in a vicious cycle. This is because when the firm loses a customer, it has to try doubly hard to promote sales to existing customers to gain back the lost profits. This effect snowballs and as more customers leave, the firm may eventually realise that they have been entrenched in this vicious cycle of hard-selling. The economic costs at this stage would have been very costly already. Under such circumstances, spa operators should not go overboard in their sales tactics, otherwise the economic benefits of providing new product information will be overshadowed by the economic costs of being drown into the vicious cycle of hardselling. From the perspective of consumers, if spa 4 operators use professional and less aggressive measures to inform them of new products, the social benefits for consumers are clear because this gives them...
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This document was uploaded on 01/14/2014.

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