What are some of the objectives a firm might hope to achieve when setting prices?
What will be an ideal response?
The first step in setting prices is developing pricing objectives that form the basis for decisions for other stages of the pricing process. A firm's objectives include survival, profit, return on investment, market share, cash flow, status quo, and product quality.Survival means temporarily setting prices low, even at times below costs, in order to attract more sales. Profit objectives tend to be set at levels that the owners and top-level decision makers view as satisfactory and attainable. Pricing to attain a specified rate of return on the company's investment is a profit-related pricing objective. A return on investment (ROI) pricing objective generally requires some trial and error. Firms establish pricing objectives to maintain or increase market share. They recognize that high relative market shares often translate into high profits. Some companies set prices so they can recover cash as quickly as possible. The use of cash flow and recovery as an objective oversimplifies the contribution of price to profits. A status quo pricing objective can reduce a firm's risks by helping to stabilize demand for products. A high price on a product may have the effect of signaling to customers that the product is of a high quality.
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A) inbound telemarketers B) catalog sellers C) outbound telemarketers D) infomercial marketers E) mobile marketers
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Answer the following statement true (T) or false (F)
Between which of the following parties would a fiduciary relationship exist giving rise to a presumption of undue influence?
A) Between a bus driver and a regular passenger. B) Between an account and his client C) Between a lawyer and his client D) Both A and C E) Both B and C
Answer the following statement(s) true (T) or false (F)
1. An “I win, you lose” mentality can be referred to as a silo mentality. 2. Lack of information visibility is a common obstacle to process integration. 3. Frequent demand forecast updating can contribute to the bullwhip effect. 4. The batching of orders is unlikely to increase the likelihood of the bullwhip effect occurring. 5. Demand variability can lead to order batching.