The problem with sales-oriented pricing objectives is that:
A) many managers are evaluated by their level of sales.
B) larger sales don't necessarily lead to higher profits.
C) the number of units sold does not consider possible growth in the market.
D) sales growth usually leads to declining profits.
E) All of the above.

Question

Quizplus · Accepted Answer

Sales-oriented pricing objectives focus solely on increasing sales, without considering whether the increase in sales will lead to higher profits. This approach can be problematic because larger sales don't necessarily translate into higher profits. Therefore, it's important for companies to consider other factors, such as price elasticity, cost structure, and competition when setting pricing objectives.

The Problem with Sales-Oriented Pricing Objectives Is That