Only available on StudyMode
  • Download(s) : 257
  • Published : March 21, 2011
Open Document
Text Preview
Unethical cases of Carrefour

I would like to discuss the unethical pricing activity of Carrefour. [pic]
Carrefour S.A. is a French international hypermarket chain. It is the one of the largest hypermarket chains in the world, the second largest retail group in the world in terms of revenue and third largest in profit after Wal-Mart and Tesco. Carrefour operates mainly in Europe, Argentina, Brazil, China, and Colombia, but also has shops in North Africa and other parts of Asia, with most stores being of smaller size than hypermarket or even supermarket. Carrefour means "crossroads" in French. (Wong, F. Q. 2011.)

Carrefour is being criticized for its dishonest and misleading pricing of products sold in China, including Shanghai, Tianjin, and Kunming etc. Many consumers complained that they paid more money than what they had seen on the price tag. Others complained about the price listed on the price tag did not reflect the actual price of the product. In 4Ps, this was related to the unethical behavior of pricing in its marketing activities. Here are some examples of this fraudulent conduct:

In Kunming, it was found that the original price of one pack of squid shreds is one hundred and thirty eight dollar. But when staffs of Carrefour wrote the price on the price tag, they wrote as follow:

Many consumers believed that the price was thirteen point eight dollar. So when they paid for the product, they needed to pay for a much higher price. This behavior was obviously unethical because some products that actually cost thirteen point eight dollar, their price are written on the price tag same as the above one. So lots of consumers were misled by this written pattern that one pack of squid shreds just cost thirteen point eight dollar. (Elvis, E. 2011.)

Another example was in Shenyang, it was stated that the original price of a set of men’s underwear was one hundred and sixty nine dollar. And now because of promotion, the price dropped to fifty point seven...
tracking img