Managing for Long-Run Profits as a Pricing Objective Implies That

question 362

Multiple Choice

Managing for long-run profits as a pricing objective implies that a company will

• A)give up immediate profit in exchange for achieving a higher market share in hopes of penetrating competitive markets.
• B)maintain a given price range to ensure there is no loss of customers over time, even if the profit margin declines.
• C)invest excess cash in bonds and certificates of deposit in order to counteract any inflationary economic changes in the future.
• D)reinvest all profits into market or product research rather than returned to shareholders.
• E)drop all products, product lines, or divisions that cannot maintain their pricing goals.

---

Definitions:

Mediation Studies

Research focused on the examination of processes through which interventions or variables produce their effects, often used in conflict resolution and peace studies.

Systematic Desensitization

A behavioral therapy technique aimed at reducing anxiety through gradual exposure to the feared object or situation coupled with relaxation exercises.

Operant Conditioning

A learning process in which the likelihood of a behavior is increased or decreased through reinforcement or punishment.

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus.