Question

Many practical consumers think of the pricing practices and gimmicks mentioned in the text as a nuisance or irritant that they must live with, not as something morally objectionable. But tricky or manipulative pricing does raise moral questions—not least about business’s view of itself and its role in the community. Businesspeople and ethical theorists are now beginning to take it seriously.

1. What examples can you think of in your experience of manipulative pricing?
2. Do you think it was morally permissible for the company to try and manipulate you, the consumer, in such a way? Why or why not?

Answer 1

Answer: One such example that I faced of the manipulative pricing was at the electronic section of a supermarket chain. There were three T.V sets that were marked with the price like $599 for 32 inch T.V, $ 799 for 40 inch T.V and $ 999 for 46 inch T.V. The company had the highest margin on the 40 inch T.V hence it had decided this pricing so that the 40 inch set appears to be a better option than 30 inch and economical option than 46 Inch T.V. Such pricing prompt the sales of 40 inch T.V. I feel that this is not a morally permissible thing to do as it influences the decision making process of a customers in a manipulative way and uses a false impression for prompting him to make a decision other than he intended to. Most often such pricing strategy forces a customer to purchase an item that he does not suits his actual needs.