Lori Schmalz
CTEC 205
Chapter 4
Page 141 - Questions
1. Showrooming is an act done by consumers to asses a product. We are used to being able to touch and
feel something before we buy it. That will likely change over time, as we see that we are getting the
same product from ordering it over the Internet.
Online vendors do not have anything to do with showrooming, but they are benefitting from this act by
consumers, and I think they are happy that consumers have that ability to do their research and goes on
to purchase their products from the online vendor. As far as Ethics, I don’t think it is unethical of the
online vendors if they are not promoting that the customer go to Best Buy to look at the same product
before buying it from them. They are offering a popular product at a reasonable price. That is not
unethical. To look at these ethics under Kant’s categorical imperative, I see the same thing. The online
vendor has items for sell, and the consumer does their research to make a decision on which items to
purchase. How the consumer goes about that does not affect the ethics of the online vendor. If you then
look at this ethical question with a utilitarianism view, I think it remains the same. Online sales have
increased year after year; therefore, consumers are happy with having this option as well as storefronts
to shop for their needed items. Many consumers are happier getting the products that they desire at the
best price, so the online selling works for them. Since this consumer activity of showrooming is
happening, it does get customers into the stores and may provide additional customer bases for some
stores. Therefore, I do think that online vendors provide options that provide the greatest good to the
most customers, thus ethical as well.
2. I do not think that Amazon.com is behaving unethically under either view. They are providing the
world what consumers are asking for, an easy way to see products that are available on the market and
their pricing. I have watched this product work and it is effective when a consumer wants information
about the product, sellers, pricing, and like products. It allows customers the ability to be sure that is
what they want and easily be able to find the best price. With Amazon’s Price Check, it would be very
interesting to have that kind of resource be a universal law. Having every seller provide consumers with
the going price from other vendors for an item they sell would probably not work well for businesses,
but consumers would love to go to any vendor and ask about a product and have the full disclosure of all
products and prices across vendors.
3. I had not thought about consumers being ethical or unethical in this venue before, but I reviewed
some data about it and now think that it can be unethical to use the facilities of a bricks & mortar store
to review items before going to purchase items online, when you know that is what you are doing. A
consumer would be making a conscious effort to use the stores resources, like employee knowledge and
display setups to identify how to setup and use the product they are planning to purchase at another
vendor. I think there is a value to making your purchases in as many local markets as possible to support
your local community.
Lori Schmalz
CTEC 205
4. Consequences of showrooming include businesses not having enough revenue to maintain qualified
customer service staff members to assist customers in understanding the products they come to view, if
they are buying them at another vendor. Consumers may think that they are getting the same product
that they looked at in the store, but the product may not be the exact same thing, I have had this
happen in an online purchase, but it is much better now. The product did not have all the abilities that I
tried in the store.
Another consequence right now of showrooming is the negative effect on the revenues of smaller local
stores. However, this trend of showrooming can become a benefit to stores too, whereas they can add
to their store location a showroom for online items as well as items available for purchase. This change
will allow those stores to maintain a portion of the sales whole providing a place where customers can
peruse items of choice. The stores could make some money from the manufacturer for the showroomer
items as well. I read along my research the Best Buy is looking at this opportunity now.
5. I would tell “Brick & Mortar” company managers to embrace the showroom shoppers and create the
best display and user information for the products that they provide for customers to tryout and
purchase. Develop a space of comfort for customers to try products. Make the customer experience a
great one and provide knowledgeable customer service professionals to provide quality information and
show the customer other items that they may need to go with their purchase (additional revenue, even
if the item is bought there). With electronics, providing repair services and shipping services for online
purchases may help stores to continue to be part of the retail system.
6. I believe that there is an ethical responsibility to pay state tax on purchases when you live in a sales
taxed state under the universal law perspective. In addition, there is an argument for the sales tax in a
state providing the greatest good for the greatest number of recipients. Nevertheless, I do think that
taxes are so confusing to most members of any state, that they just pay what they are told to pay or are
charged by the retailer.
When I have purchased items online and there is no tax, I do not remember ever thinking about paying
taxes additionally to my state. Lack of knowledge makes us all pay more in the end. When we do not pay
our taxes, it creates deficits for important things we value in our state as a collective, like; aging care,
education, and roads, waterways, and the parks upkeep. It then can cost more money to bring them
back up to a working level for us. Thus, we should pay our needed taxes.
With the posturing statement in 6b, I think these comments are a sign of ignorance. I do not think there
are any bloated retirement systems that are giving large amounts of money to any old people. This
comment does not change my thinking about all of us paying our fair share of taxes. (In my opinion, a
fair amount of taxes is for another writing and longer!)
With the posturing statement in 6c, I think if we all said that, we would definitely have a different kind
of state to live in, with much higher taxes to make up for those that do not pay their taxes, this then
becomes unfair in my book. Yes, taxes are high, and costs are high, but we do get a lot of protection,
education, and other needed supports from our state and its staff members. I think everyone’s piddly
amount of tax is important for our state to continue to provide these resources and maintain the beauty
of the state and the land.
Lori Schmalz
CTEC 205
6d comments does not change my mind either about taxes, because someone can say that, but usually
never does anything about it. Someone told me one time, if you want state taxes to be different, you
must get involved and make them different and more effective. Throwing the bath water out with the
baby is not ever an answer with state decisions.
6e comments do not change my mind at all either. I agree that I too would get frustrated with a
cumbersome process to pay the tax and try to adjust that by buying where they will take the tax
automatically, but that is not a reason to not take care of it. I also think that it is possible that states will
have to change the way they receive taxes when it comes to global and Internet purchases. Maybe the
future will be a system that is the same tax for all purchases for all states or maybe no sales tax and just
have income taxes???
7. I would talk with legislators about setting the taxes for all purchases at a set rate for all purchases and
make the vendors set and collect the tax and roll it over to the state. I would share with then that I think
it would benefit the College of Governors to see if they can agree on one set tax for all states. I would
also suggest that they educate the people living in their state of what their responsibilities are when it
comes to online purchases in relation to sales taxes. Most of all, I would suggest that Washington get rid
of the sales taxes and use income taxes to fund services and programs.
Works Cited
Gustafson, Krystina. CNBC: Showrooming left in the dust as shoppers go online. January 2014.
Kroenke. "Using MIS 2015." Kroenke. Using MIS 2015. Pearson, 2015.
Latev, Daniel. Showrooming: New Internet Retailing Challenge for Retailers. 25 May 2012.
Loy, James. "Do You Have to Pay Sales Tax on Internet Purchases? - See more at:
http://smallbusiness.findlaw.com/business-taxes/do-you-have-to-pay-sales-tax-on-internetpurchases.html#sthash.bLcnkoY7.dpuf." FindLaw Report 2015.