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 cuts 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)a need to eliminate low-profit products
B)how pricing operates in a mature marketplace
C)the need for trade-offs in pricing objectives
D)how target markets can be ignored

Question

Quizplus · Accepted Answer

The conflict between the marketing manager's objective of gaining market share through price cuts and the finance VP's objective of maintaining a 25% return on investment illustrates the need for trade-offs in pricing objectives. Both objectives are important for the success of the company, but they conflict with each other, and the company must choose which objective to prioritize or develop a pricing strategy that balances both objectives.

The Marketing Manager of Icruise