Stone Restaurant,a newly opened restaurant,was unable to attract a lot of customers.Since the owner of the restaurant had to pay the loan amount that he had taken to start the restaurant,he decided to implement a strategy that would help him attract more customers.He offered about 20 percent discount on all the dishes on the menu on weekends.This strategy,he thought,would help him earn enough to be able to make the loan payment.In this case,the owner's pricing objective can be classified as:
A)market share maximization.
B)profit maximization.
C)asset maximization.
D)sales maximization.

Question

Stone Restaurant,a newly opened restaurant,was unable to attract a lot of customers.Since the owner of the restaurant had to pay the loan amount that he had taken to start the restaurant,he decided to implement a strategy that would help him attract more customers.He offered about 20 percent discount on all the dishes on the menu on weekends.This strategy,he thought,would help him earn enough to be able to make the loan payment.In this case,the owner's pricing objective can be classified as:
A)​market share maximization.
B)profit maximization.
C)asset maximization.
D)​sales maximization.

Quizplus · Accepted Answer

The owner's pricing objective is to increase sales by offering a weekend discount. Therefore, the objective can be classified as sales maximization, which aims to increase the volume of sales. This objective may not necessarily increase profits or market share, but it can help the owner generate enough revenue to pay off the loan.

Stone Restaurant,a Newly Opened Restaurant,was Unable to Attract a Lot