Which of the Following Statements Regarding a Market Share Pricing

question 116

Multiple Choice

Which of the following statements regarding a market share pricing objective is most accurate?

• A) A market share objective is often difficult for product managers since stockholders are looking for immediate dividends (return of profits).
• B) Although increased market share is a primary goal of some firms, others see it as a means to other ends, such as increased sales or profits.
• C) Selecting market share as a pricing objective is particularly effective if industry sales are growing.
• D) An advantage of market share as a pricing objective is that it is particularly insensitive to competitors' actions.
• E) Ironically, a market share objective is realized by raising prices in order to increase consumer confidence during the decline stage of a product's life cycle.

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Definitions:

Salespersons Goals

Objectives or targets set for a salesperson to achieve within a specific time frame, typically related to sales volume or revenue.

Commission

A fee or percentage of a sale paid to a salesperson, intermediary, or agent for their services in facilitating the transaction.

Profits

The financial gain obtained when revenue generated from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

Payday Loan

A type of short-term borrowing where an individual borrows a small amount at a high rate of interest, typically due on their next paycheck.