After determining its pricing objectives, what is the next logical step a firm should take in setting its pricing policy?
A. It should analyze its competitors' costs, prices, and offers.
B. It should select its pricing method.
C. It should select its final price.
D. It should determine the demand for its product.
E. It should estimate the cost of its product.
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A firm that is plagued with overcapacity, intense competition, or changing consumer desires would do better if it pursues ________ as its major objective.
A. market skimming
B. product-quality leadership
C. survival
D. profit maximization
E. market penetration
After estimating the demand and costs associated with alternative prices, a company has chosen to price its product in such a way that it gains the highest rate of return on its investment. The company is looking to ________.
A. maximize market share
B. skim the market
C. become a product-quality leader
D. survive in the market
E. maximize current profit
Companies who believe that higher sales volume leads to lower unit costs and higher long-run profits are attempting to ________.
A. maximize their market share
B. skim the market
C. become a product-quality leader
D. merely survive in the market
E. maximize their current profits
A market-penetration pricing strategy is most suitable when ________.
A. a low price slows down market growth
B. production and distribution costs fall with accumulated production experience
C. a high price dissuades potential competitors from entering the market
D. the market is characterized by inelastic demand
E. a low price encourages actual competition
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