This guide to business ethics provides key terms and concepts related to business ethics in a short, easy-to-use format. It provides objective coverage of theories, corporate social responsibility, human resources issues, consumer protection, and ethical issues in marketing and advertising. It is an ideal supplement for business ethics courses or as a reference for students and practitioners who would like to learn more about the basics of business ethics.
Ethical Issues in Pricing
Pricing, one of the four functions of marketing (along with product, place, and promotion), is a dynamic process by which buyers and sellers determine what, and how many, units of wealth should be exchanged for a needed product or service. Buyers and sellers have differing goals in this exchange process. Usually, buyers are interested in obtaining needed products and services at the lowest possible price, while sellers tend to concern themselves with maximizing their profits.
Price affects both the supply of, and the demand for, a particular item. Generally, higher prices encourage sellers to produce more of an item but discourage buyers from purchasing large quantities of the item. Contrariwise, low prices tend to whet buyer demand for an ...