Case 5 - Regina Bear, M KT 211, Case 5 1. Price gouging is...

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Unformatted text preview: Regina Bear, M KT 211, Case 5 1. Price gouging is a reference to a seller's asking a price that is much higher than what is seen as 'fair' under the circumstances. In precise, legal usage, i t is the name of a felony that applies in some of the United States only during civil emergencies. In less precise usage, i t can refer either to prices obtained by practices inconsistent with a competitive free market, or to windfall profits. I don’t know if I necessarily think it should be a crime because I believe a business has a r ight to charge what they want but I do think it is unethical and I would hope Americans would see which companies are fair and caring and decide to p urchase from them and put the other companies who only want to help themselves out of business. 2. Ethics deal with personal moral principles and values. Laws are society's values and s tandards that are enforceable in the courts. This distinction can sometimes lead to the r ationalization that if a behavior is within reasonable ethical and legal limi ts, then it is not r eally illegal or unethical. 3. Demand-oriented approaches: • Skimming • Penetration • Prestige • Price lining • Odd-even • Target • Bundle • Yield management Cost-oriented approaches: • Standard markup • Cost-plus • Experience curve Profit-oriented approaches: • Target profit • Target return on sales • Target return on investment Competition-oriented approaches: • Customary • Above, at, or below market • Loss leader ...
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