Which of the Following Statements Regarding a Market Share Pricing

question 102

Multiple Choice

Which of the following statements regarding a market share pricing objective is most accurate?

• A)A market share objective is often difficult for product managers since stockholders are looking for immediate dividends (return of profits).
• B)Although increased market share is a primary goal of some firms,others see it as a means to other ends,such as increased sales or profits.
• C)Selecting market share as a pricing objective is particularly effective if industry sales are rising.
• D)An advantage of market share as a pricing objective is that it is particularly insensitive to competitors' actions.
• E)Ironically,a market share objective is realized by raising prices in order to increase consumer confidence during the decline stage of a product's life cycle.

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Definitions:

Translation Gain/Loss

The gain or loss resulting from the conversion of foreign currency amounts into the functional currency of a business during the consolidation of financial statements.

Functional Currency

The currency of the primary economic environment in which a company operates, typically used in reporting its financial statements.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use, reducing its book value.

Canadian Dollars

The official currency of Canada, commonly represented by the symbol CAD.