Final answer:
If a retailer aims to gain 5 percent of market share, their primary focus is on a market performance objective. This goal is related to the retailer's ambition to expand its presence in the market compared to its competitors, indicating a competition-oriented approach based on productivity and consumer appeal.
Step-by-step explanation:
If a retailer has set its primary objective as gaining 5 percent of market share, it is focusing on a market performance objective. This type of goal pertains to a company's efforts to achieve a specific level of presence within its industry's marketplace. Gaining market share can increase a firm's influence on the market and enable it to shape industry trends to a greater degree. It underlines a strategic effort to attract more customers, increase sales, and expand its influence relative to competitors.
In a competitive market, the business's ability to gain market share will likely depend on its productivity performance and how it positions itself in terms of consumer choice. However, aiming for increased market share is inherently a competition-oriented objective, as it measures success against the performance of other businesses in the same market.
Furthermore, this objective demonstrates an understanding that in a free enterprise system, productivity and efficiency are essential for trimming costs and offering better value to consumers. A company focusing on market share is likely keen on both productive efficiency (producing without waste to minimize costs) and allocative efficiency (allocating resources most beneficially from the perspective of consumers).