In versioning, the firm makes a high-quality product, version A, and sets a high price for one market segment. The firm also degrades this product to produce version B. It offers version B for a lower price to a different segment of customers. Is there an ethical issue here

Pricing products of different versions is not an ethical issue, but an economic one.

Explanation:

When a company decides to price a product, there are a number of factors that lead to the value that will be added to that product. In short, when pricing a product, the company will consider the costs of producing and transporting it, the quality of the product, the raw material used, the demand for that product, and the audience for which it is intended. Pricing is a strategic retail activity, especially for those dealing with a large number of products.

In the case of the company that degraded version A of a product, with the objective of launching a version B of the same product in lower quality and lower price, we can say that what happened there was a sales strategy that does not necessarily involve an ethical issue ...

The company has degraded version A of the product, to offer the same product to a less economical audience, as the version B of the product has a lower quality its price will also be lower and more accessible to the entire population, but this does not prohibit no one to buy version A, which is more expensive and with higher quality.