Question

Anthony works at a firm that wants to develop a new pricing strategy for one of its products. The company has decided that its main objective for this product is to increase the product's sales in relation to industry sales. Anthony has obtained a list of prices that tell him how much similar products are being sold for. Anthony is particularly interested in the industry's top competitor because it has so much market share. After determining the price of its major competitor, Anthony decided to undercut their price by several dollars. He believes putting a sign in their stores that features his company's discounted price next to the price of their major competitor for the same product will show consumers that Anthony's company offers them a much better deal. However, he knows that he has to be careful not to misrepresent the competitor's price in the process.

Anthony's firm has adopted a ______________ pricing objective.

a. market share
b. status quo
c. profit
d. return on investment
e. cash flow

Answer 1

a. market share

Step-by-step explanation:

Based on the information provided within the question it can be said that the Anthony's firm has adopted a market share pricing objective. This pricing objective focuses on reaching or maintaining the target market share for a company's product using any necessary tactics. Which is what Anthony is doing, he is undercutting the competitions prices in order to reach the top competitors market share for their competing product.