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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