The marketing manager of icruise.com (a website 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 December.However,the vice-president of finance is committed to reporting a 25 percent return on investment at all times.What does this conflict illustrate?
A) how target markets can be ignored
B) how pricing operates in a mature marketplace
C) a lack of corporate concentration on the marketing concept
D) the need for tradeoffs in pricing objectives

Question

Quizplus · Accepted Answer

The conflict between the marketing manager and the vice-president of finance illustrates the need for tradeoffs in pricing objectives. The marketing manager wants to gain market share through price cuts, while the finance VP wants to maintain a certain level of ROI. This highlights the importance of balancing different pricing objectives and tradeoffs in order to achieve overall business goals. The other options do not accurately capture the nature of the conflict.

The Marketing Manager of Icruise