We are now in the fascinating area of pricing and pricing methods. One of the key elements of this area is what objective is being set.

20.    Regarding pricing objectives, a good marketing manager knows that:

    a)    target return objectives usually lead to a large profit.
    Not necessarily, since the target can be relatively low and thus low profits!

    b)    status quo pricing objectives can be part of an extremely aggressive marketing strategy.
    I doubt that a status quo pricing will be part of an aggressive marketing strategy!

    c)    sales-oriented objectives usually lead to high profits.
    Sales-oriented objectives usually lead to high sales. Whether profits will be high depends on the cost structure of the product of course.

    d)    profit maximization objectives don't always mean high prices.
    True, again, depending on the cost structure of the product, a high profit margin can be set by a company with very low costs and still have prices below the competition.

    e)    both b) and d).
    No. Definitively not.