Question:
One of the factors affecting price determination of a product is 'Pricing Objectives'. Which of the following pricing objectives will result in a higher price being fixed for the product?
One of the factors affecting price determination of a product is 'Pricing Objectives'. Which of the following pricing objectives will result in a higher price being fixed for the product?
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Remember: High Quality = High R&D Cost = High Price. Premium brands always use pricing to reflect their quality leadership.
Updated On: Jun 25, 2026
- Obtaining market share leadership
- Surviving in a competitive market
- Attaining product quality leadership
- Profit maximisation in the long run
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The Correct Option is C
Solution and Explanation
Step 1: Concept
Pricing Objectives in Marketing.
Step 2: Meaning
Pricing objectives are the fundamental goals a business aims to achieve through its pricing strategy, which dictates whether the price will be set high, low, or average.
Step 3: Analysis
• Obtaining market share leadership requires lowering prices to attract the maximum number of buyers.
• Surviving in a competitive market forces a company to discount prices just to stay afloat and liquidate stock.
• Attaining product quality leadership requires heavy investment in research, superior materials, and development, forcing the company to set high prices to recover costs and signal premium value.
Step 4: Conclusion
To signal and sustain top-tier quality, a company must inherently charge a higher premium price.
Final Answer: (C)
Pricing Objectives in Marketing.
Step 2: Meaning
Pricing objectives are the fundamental goals a business aims to achieve through its pricing strategy, which dictates whether the price will be set high, low, or average.
Step 3: Analysis
• Obtaining market share leadership requires lowering prices to attract the maximum number of buyers.
• Surviving in a competitive market forces a company to discount prices just to stay afloat and liquidate stock.
• Attaining product quality leadership requires heavy investment in research, superior materials, and development, forcing the company to set high prices to recover costs and signal premium value.
Step 4: Conclusion
To signal and sustain top-tier quality, a company must inherently charge a higher premium price.
Final Answer: (C)
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