Question

Choose the incorrect statement about pricing objectives as a factor affecting the price of a product.

Options

• If a firm's objective is to maximize profits in the short run, it should charge maximum price for its products.

• If a firm's objective is to capture market share, it should keep low price of its product.

• If a firm wants to attain product quality leadership, it should charge lower prices.

• If a firm is facing problems in survival due to stiff competition, it may offer discount on its products.

Answer 1

If a firm wants to attain product quality leadership, it should charge lower prices.