A-Z Grocery Company is well known for offering quality grocery products at the lowest prices in the market. When the company applied for a zoning change to build a new store in a middle-class neighborhood, several members of the city council objected because the company has no stores in low-income neighborhoods, where they argue the low prices are needed most. The company contends that it cannot operate profitably in these neighborhoods because of higher security and operating costs.

Questions

1. Should low-cost retailers be required to locate near low-income customers? Why or why not?

2. Does the AMA Statement of Ethics address this issue? Go to www. marketingpower.com and review the code. Then, write a brief paragraph on how the AMA Statement of Ethics relates to retailing locations.