Question

You work in the marketing department of a household cleaning products manufacturer. When the CEO found that online purchase of consumer-packaged goods had reached only 1% of the $666 billion in sales in 2013, she charged your team with devising a plan to change that picture. Your research has shown that home delivery of cleaning supplies becomes economically feasible only when the total price hits $20 to $30.
Which of the following pricing objectives should the team use for its action plan?
1. volume objectives
2. prestige objectives3. meeting competition objectives
4. profitability objectives

Answer 1

Answer:

Volume objectives

Explanation:

Volume objectives are the bases pricing decisions on market share, the percentage of a market controlled by a certain company or product.

Volume Objectives refer to the objectives based on the part of a market controlled by a certain product. This helps to calculate the minimum sales of a product at a certain price level to cover all the production costs.

In the given question, the team should use volume objectives for its action plan.