Featured Research

from universities, journals, and other organizations

Commercial or communal: Why is outsourcing taboo for churches and pharmaceutical companies?

Date:
December 13, 2011
Source:
University of Chicago Press Journals
Summary:
Consumers hold churches and pharmaceutical companies to different moral standards than other organizations, according to a new study in the Journal of Consumer Research.

Consumers hold churches and pharmaceutical companies to different moral standards than other organizations, according to a new study in the Journal of Consumer Research.

Related Articles


"Imagine the CEO of a pharmaceutical company who declares that he is in the business of maximizing shareholder profitability and fully intends to charge profit-maximizing prices for his company's offerings -- and those prices should be very high because of limited competition," write authors Peter McGraw (University of Colorado Boulder), Janet A. Schwartz (Tulane University), and Philip E. Tetlock (University of Pennsylvania). Or what if churches outsourced backlogged prayer requests to priests in Third World countries in the name of efficiency?

Consumers would be outraged by such announcements, yet these types of profit- and efficiency-seeking behaviors are common practice in other types of organizations. Why do people hold some organizations to different standards? The authors found that consumers believe that some organizations (like churches and pharmaceutical companies) should be focused on communal rather than market-based principles.

The authors found that people expect and approve of communal behavior from churches (like hosting open-enrollment classes) and pharmaceutical companies (ensuring access to drugs for the needy). But when participants perceived that the organizations were acting out of commercial interests (outsourcing prayers or setting drug prices high to maximize profits), they became disturbed. "One experiment, for example revealed moral outrage in response to a pharmaceutical company raising the price of a successful drug to make up for losses on the development of another drug," the authors write. "Yet a software company engaging in the same kind of marketing strategy elicited little negative reaction."

Organizations can communicate with consumers in ways that will help people understand their underlying motives. For example, participants were less upset with a church that outsourced prayers to India when the church pointed out that everyone is part of God's community and that Indian and U.S. priests are equals.


Story Source:

The above story is based on materials provided by University of Chicago Press Journals. Note: Materials may be edited for content and length.


Journal Reference:

  1. Peter McGraw, Janet A. Schwartz, and Philip E. Tetlock. From the Commercial to the Communal: Reframing Taboo Trade-offs in Religious and Pharmaceutical Marketing. Journal of Consumer Research, June 2012 DOI: 10.1086/662070

Cite This Page:

University of Chicago Press Journals. "Commercial or communal: Why is outsourcing taboo for churches and pharmaceutical companies?." ScienceDaily. ScienceDaily, 13 December 2011. <www.sciencedaily.com/releases/2011/12/111213110531.htm>.
University of Chicago Press Journals. (2011, December 13). Commercial or communal: Why is outsourcing taboo for churches and pharmaceutical companies?. ScienceDaily. Retrieved February 1, 2015 from www.sciencedaily.com/releases/2011/12/111213110531.htm
University of Chicago Press Journals. "Commercial or communal: Why is outsourcing taboo for churches and pharmaceutical companies?." ScienceDaily. www.sciencedaily.com/releases/2011/12/111213110531.htm (accessed February 1, 2015).

Share This


More From ScienceDaily



More Science & Society News

Sunday, February 1, 2015

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

China's "Great Firewall" Frustrates Internet Users

China's "Great Firewall" Frustrates Internet Users

Reuters - News Video Online (Jan. 31, 2015) The Chinese government moves to tighten regulations for virtual private network (VPN) services that are used to access websites and services normally blocked in China. That&apos;s affected many internet users in the country. Yiming Woo reports. Video provided by Reuters
Powered by NewsLook.com
Excuses, Excuses: Weirdest Reasons People Give For Tardiness

Excuses, Excuses: Weirdest Reasons People Give For Tardiness

Newsy (Jan. 30, 2015) CareerBuilder surveyed around 5,000 workers and human resources managers nationwide to compile a list of strange excuses employees used when tardy. Video provided by Newsy
Powered by NewsLook.com
CDC: Get Vaccinated for Measles

CDC: Get Vaccinated for Measles

Reuters - US Online Video (Jan. 30, 2015) The CDC is urging people to get vaccinated for measles amid an outbreak that began at Disneyland and has now infected more than 90 people. Linda So reports. Video provided by Reuters
Powered by NewsLook.com
Obama To Outline New Plan For Personalized Medicine

Obama To Outline New Plan For Personalized Medicine

Newsy (Jan. 30, 2015) President Obama is expected to speak with drugmakers Friday about his Precision Medicine Initiative first introduced last week. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:

Strange & Offbeat Stories


Science & Society

Business & Industry

Education & Learning

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins