Question

Price skimming is an ethical issue covered under __________.

• A. ethics in compliance
• B. ethics in marketing
• C. ethics in finance
• D. ethics in production

Answer 1

The correct option is B ethics in marketing

Marketing ethics is that area of applied ethics which deals with the moral principles behind the operation and regulation of marketing. The issue of marketing ethics is not limited to the kind of products alone. It also deals with how such products are delivered to the customers. The ethical issues confined in this area include Price Skimming.

Price skimming is a product pricing strategy by which a firm charges the highest initial price that customers will pay and lowers it eventually. As the demand of the initial customers is satisfied and competition enters the market, the firm lowers the price to attract another segment.