Gambrell Designs thinks its new product, the Automatic Dog Walker, will have a short product life cycle; therefore, its marketing department sets its primary pricing objective as
A) market share.
B) cash flow.
C) profit.
D) product quality.
E) status quo.

Question

Quizplus · Accepted Answer

When a company anticipates a short product life cycle for a product, setting cash flow as the primary pricing objective is strategic. This approach aims to quickly recover investment and generate liquidity, as the product may not be in the market for a long time to sustain prolonged profit margins or market share growth.

Gambrell Designs Thinks Its New Product, the Automatic Dog Walker