I’m working on a marketing multi-part question and need an explanation and answer to help me learn.
Several online stores now sell products to consumers at different prices based on the user’s information, such as geographical location which determines your proximity to competitors and your area’s average income. Although this practice, known as Internet price discrimination, is not illegal, some would say it is unethical.
Do you believe this practice is unethical? Should this practice be illegal? If you think the practice should be legal, should retailers be required to put a disclaimer on their site? Explain your reasoning.
Internet price discrimination is an Internet pricing strategy that charges different prices to different customers for the same product. However, the Internet does allow consumers to quickly comparison shop for the very lowest price,
- while marketers maximize profits by placing customers into groups based on where they live
- how close they are to the retailer or a competitor
- the cost of doing business in the area
- or their Internet browsing history
- customers can find a lower price if they wish to surf the net
0 comments