You are a brand manager for a large chain of grocery stores.You have been working overtime for the last two weeks to prepare for your pricing objectives meeting with the head of sales and marketing.You walk into the meeting with a high degree of confidence in the strategy that you have for setting the pricing objectives for your brand category for the upcoming year.You are speechless when the marketing head tells you that no changes in the pricing objectives will be made for your brand category.He says he believes it is most prudent to leave the existing pricing objectives as they are for the upcoming year.
Required:
Which of the following statements is the best explanation for the marketing head's decision to leave the existing pricing objectives in place with no change?
A)A status quo pricing objective can reduce a firm's risks by helping to stabilize demand for its products.
B)The company intends to focus on product quality instead of pricing to win market share.
C)The company expects its market share to increase if it leaves its pricing objectives the same.
D)Profit maximization is not an objective in the upcoming year.
E)The company is not concerned about cash flow.

Question

You are a brand manager for a large chain of grocery stores.You have been working overtime for the last two weeks to prepare for your pricing objectives meeting with the head of sales and marketing.You walk into the meeting with a high degree of confidence in the strategy that you have for setting the pricing objectives for your brand category for the upcoming year.You are speechless when the marketing head tells you that no changes in the pricing objectives will be made for your brand category.He says he believes it is most prudent to leave the existing pricing objectives as they are for the upcoming year. ​
​Required:
Which of the following statements is the best explanation for the marketing head's decision to leave the existing pricing objectives in place with no change?
A)​A status quo pricing objective can reduce a firm's risks by helping to stabilize demand for its products.
B)​The company intends to focus on product quality instead of pricing to win market share.
C)​The company expects its market share to increase if it leaves its pricing objectives the same.
D)​Profit maximization is not an objective in the upcoming year.
E)​The company is not concerned about cash flow.

Quizplus · Accepted Answer

The best explanation for the marketing head's decision to leave the existing pricing objectives in place with no change is that a status quo pricing objective can reduce a firm's risks by helping to stabilize demand for its products. This indicates that the company wants to maintain stability and consistency in its pricing strategy to minimize any potential negative effects on demand. Option B and C are not supported by the given information, and options D and E are unlikely as profit maximization and cash flow are typically important objectives for any business.

You Are a Brand Manager for a Large Chain of Grocery