You are head of sales and marketing for your firm, and you are meeting with the CEO to establish pricing objectives for the upcoming product year. Which of the following factors are you going to consider as you establish your firm's pricing objectives?
A) Consumer advocacy groups' concerns
B) Sales reps compensation packages
C) Competitor complaints
D) The firm's survival
E) Dissident shareholders' complaints

Question

You are head of sales and marketing for your firm, and you are meeting with the CEO to establish pricing objectives for the upcoming product year. Which of the following factors are you going to consider as you establish your firm's pricing objectives? 
A) Consumer advocacy groups' concerns 
B) Sales reps compensation packages 
C) Competitor complaints 
D) The firm's survival 
E) Dissident shareholders' complaints

Quizplus · Accepted Answer

The firm's survival is a critical factor to consider when establishing pricing objectives. The price must generate enough revenue to cover the costs incurred in producing and selling the product and earn a profit to ensure the long-term survival and growth of the firm. Consumer advocacy groups' concerns, competitor complaints, sales reps compensation packages, and dissident shareholders' complaints may influence pricing decisions, but they are not as significant as the firm's survival.

You Are Head of Sales and Marketing for Your Firm