Are retail prices "just" when they do not include social costs?
The price is "right" when the buyer agrees to purchase goods or service. But is it "just"? That is, does the price include social costs such as pollution and discrimination? Cost shifting is the passing down of these costs from the seller to the buyer. The amount of cost shifting depends upon the inelasticity or elasticity of supply or demands, methods of assigning social costs, means used in promotion and the role of the market price. Wal-Mart and Body Shop International exemplify the problems of social costs. Recommendations for marketing managers concludes the article.
McMahon
T F
TF
Loyola University Chicago, IL 60611, USA.
D003361:Cost Allocation; D004782:Environmental Health / Q000191:economics; D005249:Fees and Charges / Q000592:standards*; D006801:Humans; D008389:Marketing of Health Services / Q000191:economics; D020415:Personnel Downsizing / Q000191:economics; D011287:Prejudice; D011357:Product Line Management / Q000191:economics*; D012935:Social Justice; D012946:Social Welfare / Q000191:economics*; D014481:United States