available mar 17 at 3:15pm - mar 17 at 4pm 45 minutes directions: read the following scenario. you will…

available mar 17 at 3:15pm - mar 17 at 4pm 45 minutes directions: read the following scenario. you will answer the questions in a minimum of 1 paragraph (can be more than 1 paragraph) marketers have a responsibility to set prices that satisfy both the customers and their bottom line. however, when a company is one of the only competitors in its market and sells a product that people need, it can set the price as high as it wants - even if its not the ideal price for customers. a recent example is mylan, a pharmaceutical company that makes the epipen, an injection used to fight serious allergic reactions. historically, mylan has had about 90% of the market share for this drug, so competitive pricing has not been a concern. in fact, over the past several years, the company has raised the price of epipens substantially, increasing the price by over $500 in just seven years. many people who need this medication to survive can no longer afford to pay for it. mylan has defended the price hikes, blaming the complicated health care system. the company has argued that its price increases are fair and justified due to the expenses associated with the product. what do you think? does a company have the right to increase prices as much as it wants when it does not have competition? or should companies consider the customer when setting prices? should pricing strategies differ when the product affects peoples health?

available mar 17 at 3:15pm - mar 17 at 4pm 45 minutes directions: read the following scenario. you will answer the questions in a minimum of 1 paragraph (can be more than 1 paragraph) marketers have a responsibility to set prices that satisfy both the customers and their bottom line. however, when a company is one of the only competitors in its market and sells a product that people need, it can set the price as high as it wants - even if its not the ideal price for customers. a recent example is mylan, a pharmaceutical company that makes the epipen, an injection used to fight serious allergic reactions. historically, mylan has had about 90% of the market share for this drug, so competitive pricing has not been a concern. in fact, over the past several years, the company has raised the price of epipens substantially, increasing the price by over $500 in just seven years. many people who need this medication to survive can no longer afford to pay for it. mylan has defended the price hikes, blaming the complicated health care system. the company has argued that its price increases are fair and justified due to the expenses associated with the product. what do you think? does a company have the right to increase prices as much as it wants when it does not have competition? or should companies consider the customer when setting prices? should pricing strategies differ when the product affects peoples health?

Answer

Brief Explanations:

Companies have a dual - responsibility. In a free - market economy, they aim for profit. However, when a company has a near - monopoly and its product is essential for health, like Mylan's EpiPen, ethical considerations come into play. Pricing should not be solely profit - driven. The well - being of customers who rely on the product for survival must be considered. Pricing strategies should balance the company's financial goals with social responsibility, especially when health is at stake.

Answer:

Companies should consider customers when setting prices, especially for health - related products. Pricing strategies for essential health products should differ from those for non - essential goods. A company does not have the right to increase prices as much as it wants just because it has little competition, as it has a moral obligation to ensure access to life - saving products.