Price Discrimination & Ethics
Marketers commonly engage in price discrimination strategies that seek to charge customers based on their willingness to pay. Such strategies may be completely ethical, such as a premium version of a product that is attractive to customers who are willing to pay more. In some cases, algorithmic pricing and other techniques that attempt to price based on data about a customer steps over the line and may be considered unethical. Sale above advertised price can be used as an ethical guideline for pricing that states that once you show a customer a price, you can't charge them more.| Overview: Sale Above Advertised Price | ||
Areas | MarketingPricingCompetition LawCompliance | |
Definition | The principle that once you show a customer a price for something, you can't charge them more. | |
Value | Establishes a basis of trust in marketing communications such as advertising that is conductive to commerce and competition. | |
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