Asked by
Blast Plays
on Dec 15, 2024
Verified
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 research or product research rather than returned to shareholders.
E) drop all products, product lines, or divisions that cannot maintain their pricing goals.
Long-Run Profits
Profits that are sustained over a long period, indicating stability and success in a company's operations and strategies.
Higher Market Share
The aim of obtaining a greater percentage of sales within a market compared to competitors.
Penetrating Competitive Markets
The strategy of entering and establishing a presence in markets with high levels of competition.
- Comprehend the range of pricing aims that enterprises may establish, such as amplifying immediate financial outcomes, orchestrating for long-term profit success, procuring a target ROI, and upholding operational viability.
- Discuss how pricing contributes to the attainment of a corporation’s financial aims, like revenue maximization and profit optimization.
Verified Answer
TD
Learning Objectives
- Comprehend the range of pricing aims that enterprises may establish, such as amplifying immediate financial outcomes, orchestrating for long-term profit success, procuring a target ROI, and upholding operational viability.
- Discuss how pricing contributes to the attainment of a corporation’s financial aims, like revenue maximization and profit optimization.