If Wrigley set its pricing objective as attaining 38 percent of the chewing gum market, what else would be needed to make this a true pricing objective?
A)Statement of demand elasticities
B)Identification of cost structure
C)Breakeven analysis
D)Identification of a time period for accomplishment
E)Establishment of a subsequent pricing policy

Question

Quizplus · Accepted Answer

To make attaining 38 percent of the chewing gum market a true pricing objective, Wrigley would need to identify a time period for accomplishing this goal. This would provide a specific target for the company to work towards and enable them to measure their progress towards achieving the objective. Identification of demand elasticities, cost structure, breakeven analysis, and subsequent pricing policy are all important considerations in pricing strategy but are not directly related to setting a specific goal for market share.

If Wrigley Set Its Pricing Objective as Attaining 38 Percent