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Whose Back Do I Scratch?

Eric Nelson, Denise Oas
January 1, 2015
SKU:
BUS-004232
Region: 
North America
Topic: 
Ethics & Social Justice, Marketing & Sales
Length: 
2 pages
Keywords: 
agency theory, moral hazard, internal marketing, service failure, frustration
Copyrighted by: 
Journal of Critical Incidents
Student Price: 
$4.00 (€3.75)
Average rating: 
0

Danielle O’Reilly was frustrated. She paid for a massage several weeks ago and was really looking forward to it. However, she had just been told that she was not going to get her massage and there was nothing she could do about it. Danielle refused to believe she paid thirty-five dollars for nothing, but what could she do?

Learning Outcomes: 
  1. Apply Agency Theory to an intermediary relationship.
  2. Determine the self-interests that drive the agent-principal problem.
  3. Apply ethical frameworks to the agent-principal relationship.
  4. Make recommendations for action that take into account the self-interests of agents and principals.
  5. Determine the implications of moral hazard in an intermediary relationship.