A firm has to consider many factors in setting its pricing policy. We list these as a six-step process. Which of the following steps could involve maximum market share?
A) selecting a pricing method
B) determining demand
C) selecting the pricing objective
D) researching reference prices in the target market
E) selecting the final price

Question

Quizplus · Accepted Answer

Selecting the pricing objective could involve maximum market share as one of the options. A company may choose to set prices with the objective of gaining market share, even if it means sacrificing profit margins. Therefore, this step could involve considering maximum market share as an objective. The other steps listed do not necessarily involve considering maximum market share as a factor.

A Firm Has to Consider Many Factors in Setting Its