To increase the popularity of its new range of smartphones,GizmoPro Inc.,a mobile phone manufacturer,offered several other products for free to customers who bought the smartphones.However,the management of GizmoPro Inc.soon found this to be an unsustainable practice.The company then decided to offer discounts on the products instead of giving them for free.These actions of the management of GizmoPro Inc.are aimed at:
A)market share pricing.
B)profit maximization.
C)demandorientation.
D)sales maximization.

Question

To increase the popularity of its new range of smartphones,GizmoPro Inc.,a mobile phone manufacturer,offered several other products for free to customers who bought the smartphones.However,the management of GizmoPro Inc.soon found this to be an unsustainable practice.The company then decided to offer discounts on the products instead of giving them for free.These actions of the management of GizmoPro Inc.are aimed at:
A)​market share pricing.
B)profit maximization.
C)demandorientation.
D)​sales maximization.

Quizplus · Accepted Answer

The management of GizmoPro Inc. switched from giving free products to offering discounts as the earlier practice was not sustainable. This implies that they were losing money on the free products, which meant a decrease in profits. Thus, the company's actions were aimed at profit maximization.

To Increase the Popularity of Its New Range of Smartphones,GizmoPro