Question

The marketing manager of Rues Golf Club finds that the club can increase its market share, and become the industry leader if it slashes membership prices by 50% during the first quarter of the year. However, the club cannot achieve its target return on investment if its slashes its membership prices during a quarter. This conflict illustrates:_________

Answer 1

Need for trade offs in pricing objectives

Step-by-step explanation:

I the given scenario the club is faced with two choices. Either they increase market share and become an industry leader while slashing membership prices, or leave membership price the way it is and meet its target on return on investment.

A trade off is required in this kind of situation.

In a trade off a business will need to lose in one aspect in order to gain in another.

So a choice will need to be made on what the business will be able to lose and come out benefiting more.

If the company values the proposition of increasing its market share and becoming the industry leader, it will slash it's membership price by 50%