Question

The marketing manager of Raven Golf Club finds that the club can increase its market share if it slashes membership prices during the first quarter of the year. However, it would mean that the club will not achieve its target return on investment. This conflict illustrates:

A. the need to eliminate low-profit products.
B. a lack of competition in the marketplace.
C. how pricing operates in an ideal marketplace.
D. the need for trade-offs in pricing objectives.

Answer 1

Answer: D. The need for trade offs in pricing objectives

Explanation:

The conflict in this scenario illustrate " the need of trade offs in pricing objectives ".

Trade off in economics means most preferred possible alternative, it is often referred to as an opportunity cost that is the most preferred alternative. It is a sacrifice that must be to get a particular goods or service.