The marketing manager of icruise.com (a website targeted to consumers who want a luxury vacation) finds that the firm can gain market share and become the industry leader if it slashes prices by 50 percent during December. However, the vice-president of finance is committed to reporting a 25 percent return on investment at all times. What does this conflict illustrate?
a. how target markets can be ignored
b. how pricing operates in a mature marketplace
c. a lack of corporate concentration on the marketing concept
d. the need for tradeoffs in pricing objectives
Ans: d. the need for tradeoffs in pricing objectives
Business
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The statement of retained earnings (or owner’s equity) uses information from the:
A. balance sheet B. operating statement C. income statement D. statement of cash flows
Business
A perpetuity has a PV of $20,000. If the interest rate is 6%, how much will the perpetuity pay every year?
A) $600 B) $960 C) $1200 D) $720
Business