GoodFurn Furniture Company has recently moved to a new,larger location.At the new location,it has been unable to attract sufficient customers.Its owner did not have the cash to pay the current loan installment due for the building and inventory.So,he decided to reduce all merchandise prices by at least 50 percent for a weekend sale to earn enough to make his loan payment.In this case,the owner's pricing objective can be classified as:
A)market share maximization.
B)satisfactory profits.
C)asset maximization.
D)sales maximization.

Question

Quizplus · Accepted Answer

The owner's pricing objective is to generate as many sales as possible during the weekend sale to earn enough money to make the loan payment. This is an example of sales maximization, which focuses on increasing revenue and market share in the short term. Although the owner may not be maximizing profits in the long run, the priority is to address the immediate cash flow problem by creating a sense of urgency for customers to purchase furniture at deeply discounted prices.

GoodFurn Furniture Company Has Recently Moved to a New,larger Location