Price Flashcards
What do ethical issue relating to price generally relate to?
pricing is unfair
what is price gouging?
A strategy whereby a firm sets the price of goods or
services at a level that is seen as unreasonably high
What has modern marketing been accused of related to pricing? and give an example
pushing up prices to finance heavy advertising and sales promotion.
Drugs industry
what is price collusion? and is this legal?
Strategy whereby two or more firms who are
dominant in a specific market, collectively set and maintain prices at a higher level that would have applied if there had been free competition. This is not only unethical, but, in many countries, is also illegal
what is price skimming?
A strategy where a higher price is charged at the
time a new product or service is introduced to a market, before competitive activity is likely to drive prices down
What is price discrimination?
A strategy whereby the price of goods or
services is different for different groups of people or for different distribution systems, such as online versus conventional retail outlets
What is high pressure selling?
Refers to using inducements and psychological pressure to gain fast sales.
Salespeople are sometimes accused of high-pressure selling that persuades people to buy goods they had no thought of buying or that they cannot afford
