Question

Which of the following represents a competitive intelligence practice that is both legal and ethical?

a. A firm hires a competitor's employee and asks that employee to share the names and addresses of business contacts from his/her previous job.
b. An executive attends a trade show solely to obtain a competitor's brochures, listen to sales pitches, and ask questions about the competitor's products.
c. A city council member shares information about the decision process for selecting a contractor to build a new library wing with his wife, an executive with a construction firm bidding on the contract.
d. A marketing manager at Smith-Phillips, Inc., sells confidential plans for the company's expansion into the Far East to a firm that is not a direct competitor.

Answer 1

Attending a trade show to gather information about a competitor's products is a legal and ethical competitive intelligence practice.

Step-by-step explanation:

b. An executive attends a trade show solely to obtain a competitor's brochures, listen to sales pitches, and ask questions about the competitor's products.

Out of the provided options, attending a trade show and gathering information about a competitor's products is a legal and ethical competitive intelligence practice. Trade shows are public events where companies showcase their products and services, and it is common for executives to attend to gather market insights and learn about the competition. As long as the executive does not engage in any illegal or unethical practices, such as stealing confidential information or misrepresenting themselves, attending a trade show for competitive intelligence is a legitimate strategy.