Question

State any two objectives of pricing.

Hint:

To remember Pricing Objectives, think of it as a Volume vs. Value trade-off: set prices low to capture the largest Market Share (Volume), or set them high to prioritize immediate Profit Maximization (Value).

Answer 1

Concept: Pricing is the process of determining the value of a product in monetary terms. A firm’s pricing policy is driven by its broader business objectives.
Determining the goal of price setting.
A firm may set high prices for profit maximization or lower prices to attract more customers and become a market leader.