A marketer is most likely to set prices according to a cash-flow objective when a
A) trial-and-error approach to the market is acceptable.
B) certain market share must be maintained.
C) quick return on investment is desired.
D) higher price is acceptable to the firm.
E) product is expected to have a long life cycle.

Question

Quizplus · Accepted Answer

Setting prices according to a cash-flow objective means that the marketer is focusing on generating revenue quickly in order to cover costs and gain profit as soon as possible. This objective is most likely to be used when a quick return on investment is desired, making choice C the best option.

A Marketer Is Most Likely to Set Prices According to a Cash-Flow