Chapter 17, Question 2.1:

Chapter 17, Question 2.1: Give an example of each major type of pricing objective.

Profit-Oriented: Firms like Apple are examples of profit-oriented companies. When the ipod came to the market, it was a new product and there was no competition to speak of in the MP3 player industry. Apple was and, because of quality and a relative monopoly, is able to set prices high in order to maximize profit.

Sales-Oriented: Coffee sales between Folgers and Maxwell House are an example of sales oriented pricing. Both companies set price as a means to control a larger share of the market.

Status Quo-Oriented: Air-travel is an example of status quo pricing. Across the board, airlines closely monitor their prices in comparison to other airlines in the same market. When an airline reduces its price between two markets, the competitors usually follow suit.