Which of the Following Statements About Pricing Objectives Is True

question 246

Multiple Choice

Which of the following statements about pricing objectives is true?

• A)Target return is a type of market share objective.
• B)A firm that forgoes higher profits and wants to satisfy its obligations to its customers and society in general is pursuing a social responsibility objective.
• C)Unit volume is not a type of pricing objective because it is a production strategy.
• D)Market share and unit volume are synonymous.

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Definitions:

Focus Strategy

A competitive strategy where a company chooses to serve a particular segment or group of segments within a market, tailoring its products or services to better satisfy the specific needs of those segments.

Service Productivity

A measure of the efficiency of a service operation, typically calculated as the ratio of outputs (services provided) to inputs (resources consumed) in rendering the service.

Flexible Manufacturing System

A system that allows for the easy adaptation of the production equipment and processes to manufacture different types of products or change production volumes in response to market demands.

Benefits

Advantages or positive outcomes resulting from actions, activities, or participation in certain programs or initiatives.