You Are a Brand Manager for a Large Chain of Grocery

question 109

Multiple Choice

You are a brand manager for a large chain of grocery stores. You have been working overtime for the last two weeks to prepare for your pricing objectives meeting with the head of sales and marketing. You walk into the meeting with a high degree of confidence in the strategy that you have for setting the pricing objectives for your brand category for the upcoming year. You are speechless when the marketing head tells you that no changes in the pricing objectives will be made for your brand category. He says he believes it is most prudent to leave the existing pricing objectives as they are for the upcoming year.Which of the following statements is the best explanation for the marketing head's decision to leave the existing pricing objectives in place with no change?

• A) A status quo pricing objective can reduce a firm's risks by helping stabilize demand for its products.
• B) The company intends to focus on product quality instead of pricing to win market share.
• C) The company expects its market share to increase if it leaves its pricing objectives the same.
• D) Profit maximization is not an objective in the upcoming year.
• E) The company is not concerned about cash flow.

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Definitions:

Quotas

Predetermined targets or minimums that individuals or organizations aim to achieve within a specific timeframe.

Trade Barrier

Any regulation or policy that restricts international trade, such as tariffs, quotas, or import bans.

WTO

The World Trade Organization, an international body that sets global rules for trade between nations to ensure trade flows smoothly, predictably, and freely.

Free Trade Arrangements

Agreements between countries that reduce or eliminate barriers to trade, such as tariffs and import quotas, to promote economic cooperation.