Question

Milton Friedman:
States that there is only one social responsibility that organizations have and that is to
use its resources and engage in activities designed to increase profits. Therefore, there
is no need for corporate social responsibility as the organizations main goal is profitmaking.
With the above organizations have four responsibilities.
1. Discuss at least four responsibilities.
2. Discuss at least four major factors that influence consumer buying Behaviour.

Answer 1

Solution:

1:

Following are the responsibilities that every organization has to abide by in order to create a sustainable competitive advantage, hence, the four most important responsibilities of the organization are,

• Responsibility towards the shareholders of the company.
• Responsibility towards the employees of the company.
• Responsibility towards the external stakeholders of the company such as suppliers.
• Responsibility towards the society and environment of the surround of the company.
• Responsibility towards the legal and regulatory obligations of the company.

Hence, these are some of the common responsibilities that are needed by the organization to abide by.

2:

Consumer buying behavior is a result of the amalgamation of various factors that are together responsible for developing a certain consumer buying behavior. We will discuss some of the factors that affect consumer buying behavior,

• Price of the product or service:
  This is the most critical elements which directly impact the buying behavior of the consumer. The price of the product may become a roadblock for the company if the product or service is not priced appropriately to deliver the value that is expected out of the product or service by the consumer.
  
• Quality of the product or service:
  If the quality of the product or service is good or bad as compared to the competitor it affects the consumer buying behavior of that product or service. Consumers will always prefer good quality products.
  
• Customer Service:
  Consumers also prefer to go with the brands that provide good after sales service and thus it alrers the buying behavior of the consumers.
  
• Availability of the options:
  With a saturated market the consumers have plethora of choices to choose from and hence it affects their buying behavior. The consumers would buy differently when they have no choice as opposed to when they have numerous choices to choose from.

HEnce, these are four factors that affect the consumer buying behavior.