A firm observes that a particular product-market in which it is involved is in its late majority stage.So it adopts the differentiated defender strategy;and sets price to maintain margins and maximize profit or return on investment even though some customers may switch to competitive brands or substitutes.In view of this data we can say that the firm has adopted the _____ pricing objective.

Question

Quizplus · Accepted Answer

The firm is not trying to increase market share or attract new customers through lower prices (penetration) or higher prices (skimming). It is also not trying to simply survive in the market with low prices (survival). Rather, it is in the late majority stage and aiming to maintain margins and maximize profits (harvesting) through a differentiated defender strategy.

A Firm Observes That a Particular Product-Market in Which It