Introduction and Situational Analysis
Closing pressure techniques are widely known among salespersons almost in any industry. In the given case, Jean realizes that “the other party” technique suggested by Wright is unethical towards the prospects, yet she has to support her family and is affected by the economic pressure. The dilemma is to engage to the mentioned technique or continue rejecting it. On the one hand, it is more socially acceptable to tell the truth and do not use any dishonest strategies to sell the land. On the other hand, it is not a falsification or deception of any kind, and it is contentious to consider it unethical. However, Jean is behind other salespersons in the company, and she feels uneasy regarding the use of such a technique. The key question is whether to adopt it or not in terms of ethics.
Stakeholder Analysis
The stakeholders in the given case are Jean, the salesperson, a potential customer, and the real estate industry. From the point of Jean, the most positive consequence of engaging “the other party” technique is the increased number of closed deals and the subsequent remuneration. The negative impact of rejecting it is, accordingly, the lack of money compared to other land salespersons. Considering the specified situation from the point of a potential buyer, there are also two different perspectives. On the one hand, a prospect purchased the land under the influence of the given technique may feel that the buy was unnecessary or that he or she could not afford it (Agboola, Ojo, & Amidu, 2012). On the other hand, a buyer receives assistance with the decision-making process. Even though the mentioned closing strategy seems to be dishonest, it benefits both a seller and a buyer, as the latter receives some help in making a decision, while the former acquires more closed deals. At the same time, the law allows three days for prospects to change their decision. As for the real estate industry, “the other party” technique is undoubtedly advantageous as it allows selling more land and developing new directions. Summarizing the review of the stakeholders, one may state that the situation is controversial, yet there is a risk of doing harm to buyers as a result of applying the identified selling technique. Therefore, the greater good is to avoid it as well as similar dishonest means to close the deal.
Analysis Based on Ethical Theories
Considering this situation from the perspective of ethical theories, it is possible to note a theory of the development of moral reasoning developed by Kohlberg. According to the mentioned theory, rules, norms, and laws of ethics are created by people on the basis of mutual agreement and that, if necessary, they can be changed (Tesfom, Birch, & Tessema, 2013). Therefore, having gone through all the stages of moral development, it seems that Jean should come to the realization that nothing absolutely right or wrong and that the morality of an act depends not so much on its consequences as on the intentions of the person who does it. In this regard, it is important to target the very assistance to the prospects than the profit. In case Jean would follow the above theory, her actions may be considered ethical.
Another theory that can be applied is the prospect theory offered by Kahneman and Tversky, who focus on a value function that reflects the risk aversion. As the theory based on the cognitive psychology, it may be used in the given case. According to it, a salesperson should avoid conflicts with colleagues and clients, and not to use methods that contradict ethics and generally accepted moral norms; he or she is prohibited from concealing from a client any information concerning the contract or distorting it (Seiler, Seiler, & Lane, 2012). One of the elements of Kanemann-Tversky theory is that people are losing sensitivity to losses: the more they lose, the less they feel the additional lost money. This is called the illusion of irrecoverable losses, when one begins to take a number of decisions and then understands that he or she has already suffered some losses. Instead of minimizing and stopping them, a person tends to spend more and more. Thus, Jean should reveal the value and follow the above assumptions.
Conclusion and Recommendations
To conclude, it should be emphasized that Jean was right in avoiding “the other party” technique while communicating with the buyers since such conduct may be characterized as the distortion of information presented to them that contradicts the code of ethics accepted by the National Association of Realtors (“Code of ethics,” 2017). It is possible to recommend utilizing the theory of prospects as well as the theory of the development of moral reasoning to guide Jean’ further strategy. In addition to the above managerial recommendations, she should follow the National Code of Ethics and generally accepted moral points. In sum, Jean should avoid similar techniques, strive to ensure buyers with the most credible information, and prevent dishonesty. Similar guidelines are to be used by other realtors in case of an ethical dilemma.
References
Agboola, A. O., Ojo, O., & Amidu, A. R. (2012). Investigating influences on real estate agents’ ethical values: The case of real estate agents in Nigeria. International Journal of Strategic Property Management, 16(3), 298-315.
Code of ethics and standards of practice of the national association of realtors. (2017). Web.
Seiler, M. J., Seiler, V. L., & Lane, M. A. (2012). Mental accounting and false reference points in real estate investment decision making. Journal of Behavioral Finance, 13(1), 17-26.
Tesfom, G., Birch, N. J., & Tessema, M. T. (2013). Perceptions of real estate agents on the role of professional training in ethical decision making. International Journal of Business Governance and Ethics, 8(4), 348-375.