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:

Common Components

Elements, parts, or materials that are frequently used or shared across different products or services.

Supply Chain Influence

Supply chain influence involves the capacity of a company or entity to affect decisions, activities, and efficiencies within the supply chain, including the practices of suppliers, manufacturers, and distributors.

Demand

The quantity of a good or service that consumers are willing and able to buy at a given price over a certain period of time.

Pricing Promotions

Marketing strategies that temporarily reduce the price of goods or services to stimulate demand or increase market share.