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iSeeit!: Legal and Ethical Issues in Pricing Pricing is one of the most watched and regulated marketing activities because it directly impacts the financial viability of both organizations and individuals. This activity is important because many legal and ethical issues impact pricing decisions, including pricing discrimination, price fixing, predatory pricing, and deceptive pricing. The goal of this exercise is to explain how these unethical pricing practices can impact a business in the real world. See this in action at Slice of Life Pizza in the video that follows. Click the button to watch the video. Then, answer the questions that follow. Justin, the assistant manager of Slice of Life Pizza, has been charging the younger, middle school crowd an extra $1.50 for a single slice of pizza in the effort to deter them from the restaurant and bring back the college crowd. This pricing practice is an example of Multiple Choice price fixing price discrimination. O markup pricing O predatory pricing. If Slice of Life were to partner up with its competitor, Cheese, Sauce, and More to fix the price of a large pepperoni pie, this form of pricing practice is considered illegal because Multiple Choice it can confuse and mislead the customer. w it discriminates against other competing restaurants. it discriminates against customers. it restricts competition and can result in higher prices. it can lead to a monopoly. Mozzarella Madness is a new pizza caf that just moved into Slice of Life's territory. Slice of Life wants to put its new competitor out of business, so it slashes all its prices. The strategy works. Customers flock to Slice of Life and forces Mozzarella Madness to shut its doors for good. With the competition out of the picture, Slice of Life raises its prices again. This scenario depicts which illegal pricing tactic? Multiple Choice predatory pricing deceptive pricing price discrimination price fixing O cost-plus pricing Frank, the owner of Slice of Life, explains to Justin why certain pricing practices are illegal. Which of the following statements best explains why deceptive pricing is illegal? Multiple Choice Deceptive pricing charges one group of customers one price and another group of customers another price. Deceptive pricing restricts competition and artificially elevates prices. Deceptive pricing hurts competition between companies. Thing Deceptive pricing destroys individual businesses and leads to business monopolies. Deceptive pricing convinces customers that prices are lower than they actually are with intentionally confusing or misleading information