You Are a Brand Manager for a Large Chain of Grocery

question 99

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. ​
​Required:
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 to 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:

Inventoriable Costs

Costs that are considered as assets on the balance sheet when incurred and then become cost of goods sold when the product is sold.

Warehousing Departments

Sections within a company dedicated to storing goods until they are sold or distributed.

FIFO Method

The First-In, First-Out (FIFO) method is an inventory valuation approach where goods produced or acquired first are sold or used first.

Physical Count

The process of manually counting all inventory items in a store or warehouse to verify quantities and condition.