Bert's company is about to release a new electronics product. The electronics product is estimated to have a short life cycle before it is replaced by an upgraded one. The company would like to recover the capital spent to produce the product. It therefore decides to charge the highest possible price for the product upon release. Bert's firm recognizes this might provide an advantage to competitors who may release the product at a lower price, but it believes customers will feel that the higher price signals higher quality. Refer to Scenario 20.1. What type of pricing objective has Bert's firm adopted?

Respuesta :

Answer:

The correct answer is: profit.

Explanation:

The first thing the company does is decide where it wants to position its market offer. The clearer the objectives of the company, the easier it will be to set the price: A company can search for any of five main objectives when setting its prices:

  • Survival
  • Maximum current utilities
  • Maximum market share
  • Maximum capture of the upper market segment
  • Leadership in product quality