Ethics Many successful retailers use a loss leader pric- ing strategy, in which they advertise an item at a price below their cost and sell the item at that price to get customers into their store. They feel that these customers will continue to shop with their company and that they will make a profit in the long run. Do you consider this an unethical practice? Who benefits and who is hurt by such practices? Do you think the practice should be made illegal, as some states have done? How is this different from bait-and-switch pricing?
Ethics Many successful retailers use a loss leader pric- ing strategy, in which they advertise an item at a price below their cost and sell the item at that price to get customers into their store. They feel that these customers will continue to shop with their company and that they will make a profit in the long run. Do you consider this an unethical practice? Who benefits and who is hurt by such practices? Do you think the practice should be made illegal, as some states have done? How is this different from bait-and-switch pricing?
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
Related questions
Question
![Ethics Many successful retailers use a loss leader pric-
ing strategy, in which they advertise an item at a
price below their cost and sell the item at that price
to get customers into their store. They feel that these
customers will continue to shop with their company
and that they will make a profit in the long run. Do
you consider this an unethical practice? Who benefits
and who is hurt by such practices? Do you think the
practice should be made illegal, as some states have
done? How is this different from bait-and-switch
pricing?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff1e015f3-573d-4fa4-b879-c4666e6c107a%2F296fa880-1d49-4f47-894c-165c8e52bbc3%2Fsbxpuiq_processed.png&w=3840&q=75)
Transcribed Image Text:Ethics Many successful retailers use a loss leader pric-
ing strategy, in which they advertise an item at a
price below their cost and sell the item at that price
to get customers into their store. They feel that these
customers will continue to shop with their company
and that they will make a profit in the long run. Do
you consider this an unethical practice? Who benefits
and who is hurt by such practices? Do you think the
practice should be made illegal, as some states have
done? How is this different from bait-and-switch
pricing?
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