Marketing - Why is Price Fixing Harmful?

The video tutorial emphasizes the critical role of pricing decisions in marketing. It explains price fixing as a collusion between sellers to maintain certain price levels, which disrupts market dynamics and deprives buyers of fair options. Price fixing is illegal and unethical, and marketers must avoid it to ensure compliance and avoid penalties.

Why is setting the right price crucial for marketers?

• It affects the product's marketability and profitability.

• It determines the product's quality.

• It ensures the product is unique.

• It guarantees customer satisfaction.

What is price fixing?

• A strategy to lower prices.

• A method to increase product quality.

• A way to enhance customer loyalty.

• Collusion between sellers to maintain a certain price level.

How does price fixing affect the market?

• It promotes healthy competition.

• It interferes with the normal rules of supply and demand.

• It encourages innovation.

• It reduces product prices.

Why is price fixing considered illegal?

• It enhances market competition.

• It deprives buyers of fair options and manipulates prices.

• It increases product quality.

• It supports small businesses.

What should businesses do to avoid legal issues related to pricing?

• Focus solely on profit maximization.

• Ignore market trends.

• Set prices based on market demand.

• Engage in price fixing.