Over the past several years, carefull shoppers may be spending about the same amount of money at the grocery store but leaving the store with a lighter load in their grocery bags. Food prices on many items have increased and food manufacturers are facing the same challenges as consumers. With the increase in raw materials and cost of transportation, manufacturers' profit is getting lesser. And as a result, food companies are implementing either one of these three strategies: raise price and keep packages the same; reduce the quantity in the package; do a little of both. Week after week, consumers shop for many of the same groceries. At some point, the product may be priced the same and look the same as before but with less quantity in the package.

(a) Do you think this is deceptive pricing strategy? Yes or No. Explain TWO (2) reasons why you say Yes or why you say No. (10marks)

(b) In your opinion, is it ethical for companies to practice these three strategies in initiating a price change. Explain TWO (2) reasons why you think it is ethical or why you think it is not ethical. (15 marks)

(c) If you are the marketing manager of this grocery store, discuss TWO (2) price adjustment strategies that you will implement in adjusting your grocery products prices and at the same time increasing your profits. (15 marks)