Which of the following statements regarding a market share pricing objective is most accurate?
A)A market share objective is often difficult for product managers since stockholders are looking for immediate dividends (return of profits).
B)Although increased market share is a primary goal of some firms,others see it as a means to other ends,such as increased sales or profits.
C)Selecting market share as a pricing objective is particularly effective if industry sales are rising.
D)An advantage of market share as a pricing objective is that it is particularly insensitive to competitors' actions.
E)Ironically,a market share objective is realized by raising prices in order to increase consumer confidence during the decline stage of a product's life cycle.

Question

Quizplus · Accepted Answer

Market share is the ratio of the firm's sales revenues or unit sales to those of the industry (competitors plus the firm itself).Companies often pursue a market share objective when industry sales are relatively flat or declining.Although increased market share is a primary goal of some firms,others see it as a means to other ends: increasing sales and profits.

Which of the Following Statements Regarding a Market Share Pricing