Foundations of Marketing Ethics and Pricing
People feel better when they think they are getting a great
bargain when they shop. Knowing this, some retailer’s markup items above the
traditional retail price and then offer a 60 percent discount. If they had
simply discounted the normal retail price by 20 percent, the resulting “sale
price” would have been the same. One retailer says that he is just making
shoppers happy that they got a great deal when he inflates the retail price
before discounting.
Significantly marking up prices in order to offer “deep
discounts” is not an unethical pricing practice per se, but it may be
considered misleading advertising. The retailer is not really reducing its
profits as a result of offering the sale price, even though a 60 percent
discount implies a financial sacrifice on the part of the retailer for the
benefit of the customer.
The situation described above could, perhaps, be considered
a sales promotion that uses deception or manipulation.
As a consumer think of a place you like to shop at because
of the so-called great bargains, coupons, cash back and or discounts they
offer. From your shopping experience explain if the discounts you received on
your purchase you feel was a bargain deal or do you feel you overpaid. Did you
believe the retailer is sacrificing revenue for you the consumers’ benefit? Why
or Why not? Do you find their sales practices to be ethical and beneficial to
the consumer or perhaps unethical and misleading?
The requirements below must be met for your paper to be
accepted and graded:
Write between 500 – 750 words (approximately 2 – 3 pages)
using Microsoft Word. Attempt APA style, see example below. Use font size 12
and 1” margins. Include cover page and reference page. At least 60% of your
paper must be original content/writing. No more than 40% of your
content/information may come from references. Use at least two references from
outside the course material, preferably from EBSCOhost. Text book, lectures,
and other materials in the course may be used, but are not counted toward the
two reference requirement. Reference material (data, dates, graphs, quotes,
paraphrased words, values, etc.) must be identified in the paper and listed on
a reference page.
Reference material (data, dates, graphs, quotes, paraphrased
words, values, etc.) must come from sources such as, scholarly journals found
in EBSCOhost, online newspapers such as The Wall Street Journal, government
websites, etc. Sources such as Wikis, Yahoo Answers, eHow, etc. are not
acceptable.
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