Author Question: You are the head of pricing strategy for your firm, and you are very excited about a new ... (Read 98 times)

mckennatimberlake · **on:** Jun 29, 2018

You are the head of pricing strategy for your firm, and you are very excited about a new point-of-sale system that has just been installed in all your firm's retail outlets. The system is a state-of-the-art, real-time information system that captures the details of every sale made in your retail outlets. Now you will have up-to-the-minute data on sales volume trends and performances for your entire product line. You plan to use this data to set prices based on these volume trends.

Which of the following bases for pricing are you intending to use?

A) Markup pricing
B) Competition-based pricing
C) Demand-based pricing
D) Cost-based pricing
E) Cost-plus pricing

Question 2

You are a brand manager for a large chain of grocery stores. You have been working overtime for the last two weeks to prepare for your pricing objectives meeting with the head of sales and marketing. You walk into the meeting with a high degree of confidence in the strategy that you have for setting the pricing objectives for your brand category for the upcoming year. You are speechless when the marketing head tells you that no changes in the pricing objectives will be made for your brand category. He says he believes it is most prudent to leave the existing pricing objectives as they are for the upcoming year.

Which of the following statements is the best explanation for the marketing head's decision to leave the existing pricing objectives in place with no change?

A) A status quo pricing objective can reduce a firm's risks by helping stabilize demand for its products.
B) The company intends to focus on product quality instead of pricing to win market share.
C) The company expects its market share to increase if it leaves its pricing objectives the same.
D) Profit maximization is not an objective in the upcoming year.
E) The company is not concerned about cash flow.