The problem with sales-oriented pricing objectives is that:
A) many managers are evaluated by their level of sales.
B) larger sales don't necessarily lead to higher profits.
C) the number of units sold does not consider possible growth in the market.
D) sales growth usually leads to declining profits.
E) None of these alternatives is correct.

Question

Quizplus · Accepted Answer

Sales-oriented pricing objectives focus primarily on increasing the volume of sales, which may not necessarily lead to higher profits. Sometimes, increasing sales volume may even result in lower profits due to increased costs associated with producing and selling more units. Therefore, it is important for managers to consider the impact of pricing decisions on both sales volume and profitability.

The Problem with Sales-Oriented Pricing Objectives Is That