Lincoln Florist is a flower shop that has recently moved to a new,larger location.At this new location,it has been unable to attract sufficient customers.Bonita Cho,its owner,does not have the cash to pay the current loan installment due on the building and inventory.Cho has decided to reduce all merchandise prices by at least 50 percent for a weekend sale so she can at least make her loan payment.Her pricing objective can be classified as:
A) market share maximization
B) satisfactory profits
C) asset maximization
D) sales maximization
E) target ROI

Question

Quizplus · Accepted Answer

Cho's pricing objective is to maximize sales by reducing merchandise prices by at least 50 percent for a weekend sale. This indicates that her goal is to generate as much revenue as possible in the short term to make her loan payment, rather than focus on long-term profitability or maximizing market share. Therefore, the best choice is sales maximization (option D).

Lincoln Florist Is a Flower Shop That Has Recently Moved