Managing for Long-Run Profits as a Pricing Objective Implies That

question 180

Multiple Choice

Managing for long-run profits as a pricing objective implies that a company will

• A) give up immediate profit in exchange for achieving a higher market share in hopes of penetrating competitive markets.
• B) maintain a given price range to ensure there is no loss of customers over time, even if the profit margin declines.
• C) invest excess cash in bonds and certificates of deposit in order to counteract any inflationary economic changes in the future.
• D) reinvest all profits into market research or product research rather than returned to shareholders.
• E) drop all products, product lines, or divisions that cannot maintain their pricing goals.

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Definitions:

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses through gradual exposure to the feared object or situation.

Exposure Techniques

Therapeutic methods used to treat fears and phobias by gradually exposing patients to the feared object or context without any danger.

Cognitive Therapies

A category of psychotherapeutic treatments that help patients understand the thoughts and feelings that influence behaviors.

Behavior Therapies

A range of therapies that focus on changing maladaptive behaviors through conditioning and other learning principles.