The marketing manager of pickacruise.com (a travel Web site targeted at consumers who want a luxury vacation)finds that the firm can increase its market share and become the industry leader if it slashes prices by 50 percent during the month of December.However,the Vice President of the finance department is committed to reporting a 25 percent Return on Investment (ROI)at all times,which cannot be achieved if the firm slashes its prices.This conflict illustrates:
A)a need to eliminate low-profit products.
B)a lack of competition in the marketplace.
C)how pricing operates in an ideal marketplace.
D)the need for trade-offs in pricing objectives.

Question

Quizplus · Accepted Answer

The conflict between the marketing manager's goal of increasing market share through price cuts and the finance department's goal of maintaining a 25% ROI demonstrates the need for trade-offs in pricing objectives. The firm must balance its desire for increased sales with its need for profitability. This highlights the importance of considering multiple factors when setting pricing objectives and the need to make trade-offs between various goals.

The Marketing Manager of Pickacruise