The recession has hit Dillon Products hard, and the company is willing to cut prices on its products in the short term to attract customers-even if it is not making much money on each sale-because it needs revenue to make payroll and pay its bills. Which pricing objective best describes this approach?
A) building loyal user base
B) increasing market share
C) survival
D) maintaining status quo

Question

Quizplus · Accepted Answer

The pricing objective that best describes Dillon Products' approach is survival. The company is willing to cut prices to attract customers in the short term in order to generate enough revenue to pay its bills and make payroll, indicating that their primary goal is to simply stay in business during the recession. Building a loyal user base, increasing market share, and maintaining the status quo are not the primary concerns for the company at this time.

The Recession Has Hit Dillon Products Hard, and the Company