To increase the popularity of its new range of smartphones, GizmoPro Inc., a mobile phone manufacturer, offered several accessories for free to customers who bought the smartphones. However, the management of GizmoPro Inc. soon found this an unsustainable practice. The company then decided to offer discounts on the accessories 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)demand orientation
D)sales maximization

Question

Quizplus · Accepted Answer

Offering accessories for free is not a sustainable practice as it directly reduces the company's profits. By offering discounts on the accessories, GizmoPro Inc. can still increase the attractiveness of their smartphones and encourage customers to make purchases without significantly impacting the company's profits. Therefore, the management's action is aimed at profit maximization.

To Increase the Popularity of Its New Range of Smartphones