Question

ASSERTION: Pricing strategy of a firm should be designed to achieve specific objectives.

REASONING: Pricing is not an end in itself but a means to achieve marketing objectives of the firm.

Options

• A is true, and R is the correct explanation for А.

• A is true, and R is not the correct explanation for A.

• A is true, but R is false.

• A is false, but R is true.

Answer 1

A is true, and R is the correct explanation for А.

Explanation:

Pricing should be set to meet clear objectives such as profit targets, market share, competition response or price stability. Price is a tool to achieve marketing goals, not an end in itself.