Fingerhuts Price Strategy Harvard Case Solution & Analysis

Fingerhut, based in Minnetonka, Minnesota, is a direct marketing company that sells the buffet in an array of consumer products specifically target directories. In November 1996, an article in the Star Tribune, the largest newspaper in Minneapolis, drew attention to a lawsuit brought against Fingerhut, indicating that the firm made its profits from the exploitation of the poor. Some human rights groups have rallied around the claim and provided expert opinion in favor of the court proceedings. The case illustrates the problems of ethics and management communication. Discussions focus on the constituencies. Fingerhut is exploiting its customers or giving them an affordable way to obtain valuable consumer goods on credit? There are retailers must offer quality products at reasonable prices? High interest rates are reasonable in the risk? What are the options: pawn shops, rent with option to buy? What is the profile of a typical customer Fingerhut? Discussions also focus on the issue of bringing to the voters. How much damage will make the claim that the image Fingerhut as ethical, socially conscious companies? Communication strategies that can use a company? Should he respond to the lawsuit? What should she say to your employees? "Hide
by R. Edward Freeman, Patricia H Werhane,, Gretchen A. Kalsow, Jenny Mead Source: Darden School of Business 17 pages. Publication Date: August 5, 1999. Prod. #: UV1860-PDF-ENG

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