All pricing objectives have trade-offs that managers must weigh.

Question

Quizplus · Accepted Answer

All pricing objectives have benefits and drawbacks, and managers must carefully consider these trade-offs when selecting a pricing strategy. For example, setting a high price may increase profits but may also reduce sales volume, while setting a low price can increase sales volume but may lead to lower profit margins. Ultimately, the chosen pricing objective should support the overall goals and values of the business.

All Pricing Objectives Have Trade-Offs That Managers Must Weigh