Whether the half-price offer is ethical business practice

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Reference no: EM131489040

Netbooks inc. provides accounting applications for business customers on the internet for a monthly subscription. netbooks customers run their accounting sustem on the internet;this, the bsiness data and acccounting software reside on the servers of netbooks inc. the senior managment of netbooks believes that once a customer begins to use netbooks,it would bery difficult to cancel the service. that is, customers are "locked in" because it would be difficult to move the business data from netbooks to another accounting apllication, even though the customers own their own data. therefore, netbooks has decided to entice customerwith an initial low monthly price that is half of the normal monthly ratefor the first year of services. after a year, the price will be increased to the regular monthly rate. netbooks managment believes that customerswill have to accept the fll price because customers will be "locked in"after one year of use.

a. Discuss whether the half-price offer is an ethical business practice.

b. Discuss whether customer "lock in" is an ethical business practice.

Reference no: EM131489040

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