HeartGood Eggs decided to offer a much larger than customary profit margin to grocery wholesalers and retailers on its new low-cholesterol eggs.This pricing strategy is designed to do all of the following EXCEPT which one?
A) develop wide and convenient distribution
B) encourage trial by consumers if priced low by retailers
C) maximize profit margin for the producer
D) give dealers an incentive to promote the new product

Question

Quizplus · Accepted Answer

The pricing strategy is not designed to maximize profit margin for the producer. Instead, it is designed to encourage adoption of the new product by offering a larger profit margin to retailers and wholesalers, which will help develop wider distribution, encourage consumer trial, and give dealers an incentive to promote the product.

HeartGood Eggs Decided to Offer a Much Larger Than Customary