Final answer:
The need for equity is undermined when a customer perceives that they are receiving treatment less favorable than that given to other customers. Market forces such as employee retention and customer loyalty can incentivize businesses to act in less discriminatory ways, promoting equitable treatment of both employees and customers to stay competitive.
Step-by-step explanation:
When a customer notices that some customers are receiving better treatment than he or she is receiving, this goes against the customer's need for equity. Equity is the expectation that all customers should be treated fairly and without discrimination. This need is grounded in the basic principles of equity theory, which posits that people assess how fairly they are treated compared to others. In business, failing to provide equitable treatment can lead to customer dissatisfaction and potential loss of business, as customers may choose to patronize competitors who treat them better.
Market Forces and Non-Discriminatory Incentives
- If a discriminatory business is underpaying its workers, it may find that those workers leave for jobs with another employer who offers better pay, creating market pressure to behave in a less discriminatory manner.
- In the case of a local flower delivery business noticing a significant portion of its customers are from a group it discriminates against, it might lose business if it does not adjust its behaviors and attitudes to serve all customers equally.
- Similarly, an assembly line that only hires men will be incentivized to hire qualified workers irrespective of gender if it experiences labor shortages, aligning its practices with market demands.
- A home healthcare service provider paying lower wages to certain workers on the basis of ethnicity may struggle to retain staff, prompting a change to fairer wage practices due to competitive labor market conditions.
Market forces thus provide a compelling reason for businesses to act fairly towards employees and customers alike, as equitable treatment can influence worker retention and customer loyalty, both of which are vital for a business's success.