The marketing manager of icruise.com (a Web site travel site targeted to consumers who want a luxury vacation)finds that the firm can gain market share and become the industry leader if it slashes prices by 50 percent during the month of December.However,the vice-president of finance is committed to reporting a 25 percent return on investment at all times.This conflict illustrates:
A) a need to eliminate low-profit products
B) a lack of corporate concentration on the marketing concept
C) how pricing operates in a mature marketplace
D) the need for trade-offs in pricing objectives
E) how target markets can be ignored

Question

Quizplus · Accepted Answer

The conflict between the marketing manager and the vice-president of finance illustrates the need for trade-offs in pricing objectives. The marketing manager wants to cut prices to gain market share, while the vice-president of finance is focused on maintaining a certain level of return on investment. This highlights the importance of finding a balance between pricing strategies and financial goals.

The Marketing Manager of Icruise