What are the different types of objectives that organizations can select to price their products or services?
What will be an ideal response?
Organizations can select from different pricing objectives, depending on the situation. Objectives include:
• Survival pricing objective: Setting price with the objective of maintaining positive cash flow for short-term
survival during traumatic business situations.
• Profit maximization pricing objective: Setting prices with the objective of maximizing profitability, often using
demand curves.
• Market share maximization pricing objective: Setting prices (generally low), with the objective of maximizing
market share.
• Market skimming pricing objective: Setting prices high shortly after product launch with the objective of
recouping development costs.
• Product/service -quality leadership pricing objective: Setting prices high with the objective of signaling high
quality.
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A) increased cash flows from delays in uncollectible check processing. B) elimination of bank charges for handling and audit functions. C) increased working capital from shorter receivables/cash transformation time. D) all of the above are benefits from this arrangement.
Which of the following statements is true regarding task conflicts?
A) Task conflicts relate to how the work gets done. B) Task conflicts are almost always dysfunctional. C) Groups performing routine tasks won't benefit from task conflict. D) Task conflict focuses on interpersonal relationships. E) Task conflicts hinder creativity and innovation.