LowCostDrugs.com is an online drugstore. Recently the company used a computer program to analyze the purchase behavior of customers sorted by zip code and found that customers in some zip codes are, on average, less price-sensitive than customers in other zip codes. Accordingly, the company has raised prices by 3 percent for the customers in the less-price-sensitive zip codes. Note that zip code is automatically identified when a customer comes to the company Web site.
Required:
Is it ethical for LowCostDrugs.com to charge some customers a higher price based on its analysis of prior purchasing behavior?