A firm first decides where it wants to position its market offering. A company can pursue any of five major objectives through pricing. Which of the following objectives is a major one if a company is plagued with overcapacity, intense competition, or changing consumer wants?
A) product-quality leadership
B) survival
C) predatory pricing
D) maximum current profit
E) maximum market share

Question

Quizplus · Accepted Answer

In situations where a company is facing overcapacity, intense competition, or changing consumer wants, survival becomes a major pricing objective. The company will have to set prices that are low enough to stay in business while still covering costs. The focus here is not on maximizing profit or market share, but on staying afloat in a challenging environment.

A Firm First Decides Where It Wants to Position Its