LowCostDrugs.com is an online drugstore. Recently, the company used a computer program to analyze the purchase behavior

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LowCostDrugs.com is an online drugstore. Recently, the company used a computer program to analyze the purchase behavior of customers sorted by zip code and found that customers in some zip codes are, on average, less price-sensitive than customers in other zip codes. Accordingly, the company has raised prices by three percent for the customers in the less price-sensitive zip codes. Note that zip code is automatically identified when a customer comes to the company Web site.

Required Is it ethical for LowCostDrugs.com to charge some customers a higher price based on their analysis of prior purchasing behavior?

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Managerial Accounting

ISBN: 12

3rd Edition

Authors: James Jiambalvo

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