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?

Options

• Obtaining market share leadership

• Surviving in a competitive market

• Attaining product quality leadership

• Profit maximisation in the long run

Answer 1

Attaining product quality leadership

Explanation:

• A product-quality-leadership objective supports premium pricing above competitors’ because customers are willing to pay more for superior quality and features.
• Objectives such as market-share leadership or surviving in a competitive market generally push firms toward lower or penetration pricing, while long‑run profit maximisation does not always imply a higher immediate price.
• Pricing decisions are part of the firm’s marketing/policy choices (pricing policy influences which objective, e.g., premium vs penetration, is pursued).