Explain the goal of the loss leader

Reference no: EM131846067

Question: Suppose Procter & Gamble (P&G) learns that a relatively new start-up company Method is gaining market share with a new laundry detergent in West Coast markets. In response, P&G lowers the price of its Tide detergent from $18 to $9 for a 150-ounce bottle only in markets where Method's product is for sale. The goal of this "loss leader" price drop is to encourage Method to leave the laundry detergent market. Is this an ethical business practice? Why or why not?

Reference no: EM131846067

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