A Marketer Is Most Likely to Set Prices According to a Cash-Flow

question 123

Multiple Choice

A marketer is most likely to set prices according to a cash-flow objective when a

• A) trial-and-error approach to the market is acceptable.
• B) certain market share must be maintained.
• C) quick return on investment is desired.
• D) higher price is acceptable to the firm.
• E) product is expected to have a long life cycle.

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Definitions:

Differentiation Strategy

A business approach where a company seeks to distinguish its products or services from competitors through unique features.

Cost-Based Advantages

Competitive advantages a company gains by reducing its costs below the industry average, often leading to lower prices or higher margins.

Functional Design

Functional design refers to creating items, systems, or processes that prioritize practicality and efficiency while meeting specific objectives.

Low-Cost Strategy

A business strategy aimed at becoming the lowest-cost producer in the industry or market, thereby allowing the company to offer its products or services at lower prices than competitors.