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RadioShack, an electronics retail chain, couldn't compete with the prices offered by other retailers. The company enacted price matching programs and promoted large discounts on its merchandise to raise cash and to try to stave off bankruptcy. The best pricing objective at this point for RadioShack most likely was
A) profit.
B) market share.
C) unit volume.
D) survival.
E) social responsibility.
Survival
The act of continuing to live or exist, often in spite of an accident, ordeal, or challenging circumstances.
Price Matching
A competitive strategy where a retailer promises to match lower prices offered by competitors on identical products to retain customers.
Bankruptcy
A legal process whereby individuals or businesses unable to meet their financial obligations can seek relief from some or all of their debts.
- Identify various objectives of pricing that companies might pursue, such as maximizing immediate profit, aiming for sustained profitability over time, attaining a specific return goal, and ensuring survival.
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Learning Objectives
- Identify various objectives of pricing that companies might pursue, such as maximizing immediate profit, aiming for sustained profitability over time, attaining a specific return goal, and ensuring survival.
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