BUSINESS ADMINISTRATION
MARKETING MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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maximum profit share
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market skimming
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survival
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maximum market share
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Detailed explanation-1: -Companies pursue survival as their major objective if they are plagued with overcapacity, intense competition, or changing consumer wants. As long as prices cover variable costs and some fixed costs, the company stays in business.
Detailed explanation-2: -For a business with overcapacity, fierce competition, and shifting consumer wants, a survival pricing target is appropriate. It is used when a business must set prices at a point where it can only remain in business and cover essential expenses. In Survival pricing the goal of making profit is not focused.
Detailed explanation-3: -11. Value-Based Pricing Strategy. A value-based pricing strategy is when companies price their products or services based on what the customer is willing to pay. Even if it can charge more for a product, the company decides to set its prices based on customer interest and data.
Detailed explanation-4: -A sales growth objective focuses on increasing the profit base by raising sales volume. Pricing for return on investment (ROI) has a specified profit as its objective. A pricing objective to maintain or increase market share links market position to success.