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Blind Man's Bluff: The Ethics of Quantity Surcharges
Omprakash K. Gupta and Anna S. Rominger
Journal of Business Ethics
Vol. 15, No. 12 (Dec., 1996), pp. 1299-1312
Published by: Springer
Stable URL: http://www.jstor.org/stable/25072853
Page Count: 14
You can always find the topics here!Topics: Surcharges, Consumer prices, Prices, Ethical consumerism, Business ethics, Retail stores, Pricing, Pricing policies, Merchants, Deceptive advertising
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Empirical evidence, including a recent field study in Northwest Indiana, indicates that supermarkets and other retail merchants frequently incorporate quantity surcharges in their product pricing strategy. Retailers impose surcharges by charging higher unit prices for products packaged in a larger quantity than smaller quantity of the same goods and brand. The purpose of this article is to examine the business ethics of such pricing strategy in light of empirical findings, existing government regulations, factors that motivate quantity surcharges and prevailing consumer perceptions.
Journal of Business Ethics © 1996 Springer