Unethical Pricing, Deceptive Pricing And Price Discrimination

782 Words Dec 5th, 2014 4 Pages
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 as well. Predatory pricing is selling products at lower prices compared to the other competitors to attract customers in the certain period of them to drive competitors out of the industry. Obviously, when the competitors cannot bear competing and run out of business, the seller will increase the prices. As they have no other competitors they can be able to charge customers at higher prices, which is morally wrong. Walmart is the most obvious example for this issue as they have been destroyed many local businesses when they come to the small areas to set up their stores, which offering lower prices for the locals. This may seem to be a good deal for the customers who consider doing business with Walmart until the local businesses…

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