If company A references company B in determining what price to sell its own product at, it exercises which pricing objective?
A) Target market share
B) Survival
C) Revenue maximization
D) Profit maximization
E) Status-quo

Question

Quizplus · Accepted Answer

Company A exercises the status-quo pricing objective. This means that the company sets a price similar to its competitors in order to maintain its current market share and avoid any price wars. By referencing company B, company A is simply following the existing pricing strategies in the market, rather than aiming for any specific market share, revenue or profit.

If Company a References Company B in Determining What Price