Answered: Organizations use which pricing…

Organizations use which pricing objective to maximize long-term sales? Breakeven pricing Profit maximization Markup pricing Profit-oriented pricing Market share maximization

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter14: Indirect Price Discrimination

Section: Chapter Questions

Problem 14.5IP

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Concept explainers

Product and Price Bundling

Product and price bundling is used as a marketing strategy by businesses, where complementary products and services are combined and sold as a package deal. This bundled price is usually less than the total price of the individual products if they were to be sold separately. When bundled and sold, each product is sold at a reduced price. Using a price bundling strategy helps increase the average revenue per user and also increases the engagement with the user. This happens as the perceived value of the bundled products is more than the individual products.

Question

Organizations use which pricing objective to
maximize long-term sales?
Breakeven pricing
Profit maximization
Markup pricing
Profit-oriented pricing
Market share maximization

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