Fidelity Corp. earned a 6 percent return on investment last year and wants to increase it to 10 percent this year. Which of the following pricing objectives is Fidelity seeking?
A) Target return
B) Growth in sales
C) Growth in market share
D) Maximize profits
E) Nonprice competition

Question

Quizplus · Accepted Answer

Fidelity's objective of increasing its return on investment indicates that it is seeking a target return pricing objective, which involves setting prices to achieve a specified return on investment or level of profitability. This is different from growth in sales or market share, as those objectives focus on increasing revenue or market presence rather than profitability. Maximize profits may also be a pricing objective, but the specific goal of increasing return on investment aligns with target return. Nonprice competition is not related to Fidelity's goal of increasing profitability.