Pricing Ethics
TangoWhat are the major public policy issues in pricing? Does Amazon practice predatory pricing or just good competitive marketing?
minimum 250-word response
We noticed that gas prices literally went up $.50+ overnight recently. Gas stations are one business that is notorious for price gouging. So as you think about the ethical components that come with setting a price, there are some pretty foundational philosophies that must be followed. Customers will make a purchase if the value of that product outweighs the price. Rarely do we find ourselves saying I’m going to overpay for this product because I want it. In fact, the only industry I know that this happens is electronics.
After completing this lesson, you should be able to:
- Recognize the major considerations in setting prices
- Discuss price adjustment strategies
- Describe ethics and price fixing
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