Question

Sales-oriented pricing objectives:

A. may include market share targets as well as dollar or unit sales targets.

B. might be achieved and still result in losses.

C. are especially risky during times when a firm's costs are rising rapidly.

D. All of the above are true.

E. None of the above is true.

Answer 1

Answer:

Letter D is correct. All of the above are true.

Explanation:

The sales-oriented pricing objectives of a product or service are mainly related to market survival and added value for the consumer. According to Lovelock & Wright there are three core pricing objectives:

1. Revenue-driven Objectives
2. Capacity driven Objectives
3. Demand Oriented Objectives

To be effective and ensure the organization's survival in the short and long term, product pricing must reflect all business goals: strategic, financial, marketing, and product. And also inventory and production resource levels as well as consumer price expectations.