Marketing is an essential part of approaching and selling a company’s products and services to customers. Through marketing, marketers are contributing in creating the overall good for the society as they benefit the consumers by giving them the products’ information, pricing and promotion as well as increase sales for their firms. However, in order to create the maximum profits, many marketers are involving in practicing some unethical pricing strategies to mislead their customers. The act of committing predatory pricing, deceptive pricing and price discrimination is raising some ethical concerns in marketing ethics.
First of all, the predatory pricing is one of the most unethical issues as it is not only hurting the consumers but the competitors …show more content…
It is the act of charging different prices to different customers for the identical products when the price differences are not due to the differences in costs. The fact that not all of the customers have the same elasticity of demand drives many marketers to create a marketing strategy called price discrimination. Technically, firms set up the different prices to sell their exact same products to many different groups of customers based on their demands and price sensitivity in order to maximize firms’ profit as some customers can afford a higher price for a particular product while many others are only willing to buy that same product for a pretty much lower price. Most of the people have experienced price discrimination at some point with or without noticing about it. If someone has ever tried to check the airline tickets will figure out that each time, they get a different price for the exact same flight they want. The question is asked, whether the tickets cost the airlines differently, the answer is no. The costs of carrying one additional passenger is significantly low which make the airlines manage to fill up as many seats as they can. As a result, the airlines are efficiently practicing the price discrimination games to their customers. This is totally unethical pricing practice as it 's upset the customers. Firms should make a fixed price based on the cost of their product so people will not question about whether they are receiving the same price as everybody
First of all, the predatory pricing is one of the most unethical issues as it is not only hurting the consumers but the competitors …show more content…
It is the act of charging different prices to different customers for the identical products when the price differences are not due to the differences in costs. The fact that not all of the customers have the same elasticity of demand drives many marketers to create a marketing strategy called price discrimination. Technically, firms set up the different prices to sell their exact same products to many different groups of customers based on their demands and price sensitivity in order to maximize firms’ profit as some customers can afford a higher price for a particular product while many others are only willing to buy that same product for a pretty much lower price. Most of the people have experienced price discrimination at some point with or without noticing about it. If someone has ever tried to check the airline tickets will figure out that each time, they get a different price for the exact same flight they want. The question is asked, whether the tickets cost the airlines differently, the answer is no. The costs of carrying one additional passenger is significantly low which make the airlines manage to fill up as many seats as they can. As a result, the airlines are efficiently practicing the price discrimination games to their customers. This is totally unethical pricing practice as it 's upset the customers. Firms should make a fixed price based on the cost of their product so people will not question about whether they are receiving the same price as everybody