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:
A) encourage retailers to advertise this high-margin item
B) give dealers an incentive to promote the new product
C) develop wide and convenient distribution
D) maximize profit margin for the producer
E) encourage trial by consumers if priced low by retailers

Question

Quizplus · Accepted Answer

The pricing strategy of offering a higher profit margin to grocery wholesalers and retailers on the new low-cholesterol eggs is aimed at increasing the product's distribution and promotion to attract more customers. However, maximizing profit margin for the producer is not the purpose of this strategy.

HeartGood Eggs Decided to Offer a Much Larger Than Customary