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:10/13/2017)... (PRWEB) , ... October 13, 2017 , ... Apple ... care services, staged a mock evacuation of the facility as part of a disaster ... Fire Department, Echo Hose EMS and Shelton City Emergency Manager, as well as the ...
(Date:10/13/2017)... , ... October 13, 2017 , ... Global Healthcare Management’s ... Alexandria Park in Milford, NJ. This free event, sponsored by Global Healthcare Management’s ... The fun run is geared towards children of all ages; it is a ...
(Date:10/13/2017)... ... October 13, 2017 , ... “The Journey: From the ... danger possible to save lost souls in the Philippines. “The Journey: From the Mountains ... a dedicated teacher of the Bible. She has taught all ages and currently teaches ...
(Date:10/12/2017)... ... October 12, 2017 , ... Planet Fitness, one of the largest and ... plans to open a flagship location in Covington, LA at 401 N. U.S. Highway ... store next to Office Depot in the Holiday Square shopping center. Its location allows ...
(Date:10/12/2017)... ... 2017 , ... Asante, a nationally recognized health system in ... existing home health joint venture through an agreement, effective October 1, 2017, to ... home health company with Asante, delivering clinically integrated care, for the past eight ...
Breaking Medicine News(10 mins):
(Date:10/10/2017)... -- NDS received FDA 510(k) clearance in May 2017 for its highly ... designed for endoscopy environments. An innovative secondary monitor solution, ZeroWire ... support the improvement of patient outcomes, procedural efficiency, and the lowering ... ... ...
(Date:10/4/2017)... 4, 2017  South Korean-based healthcare product Development Company ... "cprCUBE" on Kickstarter. The device will educate the user ... with better efficiency compared to the dated and pricey ... on efficacy of the compression for a more informed ... goal to raise $5,000. ...
(Date:10/2/2017)... 2017  Eli Lilly and Company (NYSE: ... third quarter of 2017 on Tuesday, October 24, 2017. ... day with the investment community and media to further ... call will begin at 9 a.m. Eastern time. Investors, ... webcast of the conference call through a link that ...
Breaking Medicine Technology: