Under what circumstances might a firm use survival pricing ...

[mckennatimberlake]

Under what circumstances might a firm use survival pricing objectives? How would a firm implement such a strategy?

Question 2

Dell Computer attempts to earn a profit by manufacturing premium-quality computers. This action represents its mission.
 
 Indicate whether the statement is true or false

[matt]

Answer to Question 1

Survival pricing would be used only when a firm must price its products simply to survive--either as an organization or as a player in a particular market. Having to resort to survival pricing usually means that the firm will cut its price to attract customers even if it then must operate at a loss. This situation, obviously, cannot be a long-term strategy or the business will eventually fail.

Answer to Question 2

True