Navigation Links
Commercial or communal: Why is outsourcing taboo for churches and pharmaceutical companies?
Date:12/13/2011

Consumers hold churches and pharmaceutical companies to different moral standards than other organizations, according to a new study in the Journal of Consumer Research.

"Imagine the CEO of a pharmaceutical company who declares that he is in the business of maximizing shareholder profitability and fully intends to charge profit-maximizing prices for his company's offeringsand those prices should be very high because of limited competition," write authors Peter McGraw (University of Colorado Boulder), Janet A. Schwartz (Tulane University), and Philip E. Tetlock (University of Pennsylvania). Or what if churches outsourced backlogged prayer requests to priests in Third World countries in the name of efficiency?

Consumers would be outraged by such announcements, yet these types of profit- and efficiency-seeking behaviors are common practice in other types of organizations. Why do people hold some organizations to different standards? The authors found that consumers believe that some organizations (like churches and pharmaceutical companies) should be focused on communal rather than market-based principles.

The authors found that people expect and approve of communal behavior from churches (like hosting open-enrollment classes) and pharmaceutical companies (ensuring access to drugs for the needy). But when participants perceived that the organizations were acting out of commercial interests (outsourcing prayers or setting drug prices high to maximize profits), they became disturbed. "One experiment, for example revealed moral outrage in response to a pharmaceutical company raising the price of a successful drug to make up for losses on the development of another drug," the authors write. "Yet a software company engaging in the same kind of marketing strategy elicited little negative reaction."

Organizations can communicate with consumers in ways that will help people understand their underlying motives. For example, participants were less upset with a church that outsourced prayers to India when the church pointed out that everyone is part of God's community and that Indian and U.S. priests are equals.


'/>"/>

Contact: Mary-Ann Twist
JCR@bus.wisc.edu
608-255-5582
University of Chicago Press Journals
Source:Eurekalert

Related medicine news :

1. Childhood obesity: Its not the amount of TV, its the number of junk food commercials
2. Alexza and Biovail Form Collaboration to Develop and Commercialize AZ-004 (Staccato(R) Loxapine) in North America
3. MIT China joint venture is preparing a major commercial launch in July 2010
4. Smithfield, United Food and Commercial Workers Union, and Food Networks Paula Deen to Deliver 150,000 Servings of Protein to San Francisco Food Bank
5. CA Commercial Realty Partners Announces “Free Lease Review for local Businesses"
6. Nuvu Cameras to commercialize worlds most sensitive camera
7. Commercial Center to Cater to Costa Rica's South Pacific Coast
8. Carefx to Collaborate with the Cleveland Clinic to Commercialize CCF Business Intelligence Solution
9. Washington Life Sciences Discovery Fund announces grants to commercialize promising technologies
10. Discordance among commercially-available diagnostics for latent TB infection
11. Advans Survey Reveals that 75 Percent of Executives Prefer Domestic Outsourcing vs. Offshore
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/24/2016)... , ... June 24, 2016 , ... A recent ... most people are unfamiliar with. The article goes on to state that individuals are ... many of these less common operations such as calf and cheek reduction. The Los ...
(Date:6/24/2016)... ... June 24, 2016 , ... June 19, 2016 is World Sickle ... chronic pain and the benefits of holistic treatments, Serenity Recovery Center of ... Sickle Cell Disease. , Sickle Cell Disease (SCD) is a disorder of the red ...
(Date:6/24/2016)... ... June 24, 2016 , ... The Pulmonary ... Dallas that it will receive two significant new grants to support its work ... marked its 25th anniversary by recognizing patients, medical professionals and scientists for their ...
(Date:6/24/2016)... ... 24, 2016 , ... Dr. Amanda Cheng, an orthodontist ... has extensive experience with all areas of orthodontics, including robotic Suresmile technology, ... , Micro-osteoperforation is a revolutionary adjunct to orthodontic treatment. It can be used ...
(Date:6/24/2016)... ... ... Inc, makers of Topricin and MyPainAway Pain Relief Products, join The ‘Business for a Fair ... hour by 2020 and then adjusting it yearly to increase at the same rate as ... the wage floor does not erode again, and make future increases more predictable. , The ...
Breaking Medicine News(10 mins):
(Date:6/26/2016)... Jazz Pharmaceuticals plc (Nasdaq: JAZZ ) announced ... Act of 1976, as amended ("HSR"), with respect to ... CPXX ) expired effective June 24, 2016, ... previously announced on May 31, 2016, Jazz Pharmaceuticals and ... Jazz Pharmaceuticals has commenced a tender offer for all ...
(Date:6/26/2016)... , June 26, 2016 ... value-based care operating models within the health care industry ... greater financial efficiency , Deloitte offers a suite ... key business issues impacting efficient cost optimization: labor resource ... , These services facilitate better outcomes and better economics ...
(Date:6/24/2016)... N.J. , June 24, 2016  Collagen ... the design, development and manufacturing of collagen and ... regeneration announced today that Bill Messer ... and Marketing to further leverage the growing portfolio ... medical devices. Bill joins the Collagen ...
Breaking Medicine Technology: