COMM 231 Lecture Notes - Lecture 4: Longrun, Environmental Technology, Junk Food

• School: Queen's University
• Department: Commerce
• Course: COMM 231
• Professor: John Pliniussen

Document Summary

Consumers concerned about how marketing system serves interests. Say they do not practice sustainable long-term consumer or business welfare. High prices: prices are higher than they would be in a sensible system. High costs of distribution: channel intermediaries mark up prices beyond the value of service, distribution costs too much, therefore consumer pay for the excess in a form of higher prices. Causes production to go down, with fewer products the price to manufacture increases, therefore overall price increases. Excessive markups: mainly in the drug industry, consumers don"t fully understand reasons for high markups, pharmaceuticals argue they mark up because it includes the cost of formulating and testing new medicines (an expensive practice) Deceptive practices: leading consumers to believe they"re getting more value than they actually are, deceptive pricing. Falsely advertising factory" and "wholesale" prices or large price reduction from phony high retail price list: deceptive promotion.