People feel better when they think they are getting a great bargain when they shop. Knowing this, some retailers mark up items above the traditional retail price and then offer a 60 percent discount. If they had simply discounted the normal retail price by 20 percent the resulting "sale price" would have been the same. One retailer says that he is just making shoppers happy that they got a great deal when he inflates the retail price before discounting.
Questions
1. What do you think?
2. Does the AMA Statement of Ethics address this issue? Go to www. marketingpower.com and review the statement. Then, write a brief paragraph summarizing what the AMA Code of Ethics contains that relates to retail pricing.