You are the CEO of a company. You have two customers (one larger and one smaller than your company).
They are asking for a 10% price reduction for the product/service you are providing. You are considering three possible options
a- Lower the price for the smaller customer only
b- Lower the price for the larger customer only
c- Lower the price for both customers
1. Use Act Utilitarianism to analyze each of the three options. You must use a table with stakeholders (at least 3) and possible outcomes (at least two) for each option. List any assumption made to quantify costs and benefits.
2. Based on the analysis, which action is the right thing to do?

Lower the price for the smaller customer only. Utilitarianism is an ethical philosophy in which the happiness of the greatest number of people in the society is considered the greatest good.

Explanation:

Smaller customers are large in number and the larger company are found only a few in numbers. If lowering the price up to ten percent for the larger number of small companies then there is also a chance of earning profits even though the prize is lowered.

Utilitarianism is the doctrine which states that an act is good if it morally serves the purpose and it benefits the majority of the people. Jeremy Bentham, the founder of utilitarianism, described utility as that property in any object, whereby it tends to produce benefit for the larger happiness.

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