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Unformatted text preview: 1. Why is it important to study price unfairness? (2-3 sentences)-Price unfairness is important because if the consumer perceives that prices are unfair, it will negatively affect the profitability of the company. Consumers need to feel that the product is a good value; otherwise they will eventually move their business to another firm. 2. List three general situations in which consumers tend to perceive a price as unfair. Give a specific example about each situation (1 paragraph).-In contextual price unfairness, consumers feel that theyre ripped off in scenarios where theyre charged higher prices because of the scenario. An example of this is going to a baseball game where food is extremely expensive. Consumers also feel price unfairness when purchasing necessity products like groceries, which they are forced to buy to survive. Finally, consumers can find situations where prices are unfair when they do not completely understand the serviced and cant determine the input costs of the...
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This note was uploaded on 12/02/2010 for the course GB GB-301-EB2 taught by Professor Nasr during the Spring '10 term at Bentley.
- Spring '10