Dixie Furniture Company has recently moved to a new,larger location.At this new location,it has been unable to attract sufficient customers.Its owner did not have the cash to pay the current loan installment due on the building and inventory,so he decided to reduce all merchandise prices by at least 50 percent for a weekend sale to earn enough to make his loan payment.His pricing objective can be classified as:
A) market share maximization.
B) satisfactory profits.
C) asset maximization.
D) sales maximization.
E) target ROI.

Question

Quizplus · Accepted Answer

The strategy described will maximize sales dollars but will not maximize or improve any of the other objectives in the long term.

Dixie Furniture Company Has Recently Moved to a New,larger Location