A Manufacturer Spends a Large Amount of Money on Research

question 244

Multiple Choice

A manufacturer spends a large amount of money on research and development leading to the introduction of a product that is likely to present the firm with a breakthrough opportunity. The manufacturer prices the product with the goal of achieving a 20 percent return on its investment. Which of the following types of pricing objectives is the company using?

• A) Target return.
• B) Profit maximization.
• C) Nonprice competition.
• D) Meeting competition.
• E) Dollar or unit sales growth.

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Definitions:

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