Diffusion Research Company specializes in conducting market research for various firms
When it receives proposals for new research, its management will first estimate the cost of conducting the research and producing and delivering the final research report. The management then adds 30 percent to that cost estimate. This becomes the price estimate given to the potential research client. This suggests that Diffusion Research Company uses a _____ pricing objective.
a. profit-oriented
b. market share maximization
c. status quo
d. sales maximization
ANSWER: a
This suggests that Diffusion Research Company uses a profit-oriented pricing objective. The company aims to earn a greater return on investment. Target return on investment is one of the most common types of profit-oriented pricing objectives.
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