Pfizer Wants to Price Its Newest Medication Product So That

question 130

Multiple Choice

Pfizer wants to price its newest medication product so that it earns a 35% return on investment. It chose this pricing objective because of the significant amount of resources it spent on research and development. What is one challenge of using return on investment as a pricing strategy?

• A) It typically involves trial and error.
• B) It gives only a partial estimate.
• C) It oversimplifies the contribution of price to profits.
• D) It is an unsustainable pricing strategy.
• E) Its achievement is difficult to measure.

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