One source of new-product ideas is competitors. When Steven Fischer recently joined Frankie and Alex Specialty Products as a brand manager, his new boss told him, “We don’t have a budget for new-product development. We just monitor our competitors’ new-product introductions and offer knockoffs of any that look like they will be successful.” Is this practice ethical?

One source of new-product ideas is competitors. When Steven Fischer recently joined Frankie and Alex Specialty Products as a brand manager, his new boss told him, “We don’t have a budget for new-product development. We just monitor our competitors’ new-product introductions and offer knockoffs of any that look like they will be successful.” Is this practice ethical?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter11: Price And Output Determination: Monopoly And Dominant Firms

Section: Chapter Questions

Problem 2.2CE

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One source of new-product ideas is competitors. When Steven Fischer recently joined Frankie and Alex Specialty Products as a brand manager, his new boss told him, “We don’t have a budget for new-product development. We just monitor our competitors’ new-product introductions and offer knockoffs of any that look like they will be successful.”

Is this practice ethical?

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