product pricing objective suggest a company or product likely to use each pricing objective. a.) 5% increase in profits over the previous year  

Expert Answers

An illustration of the letter 'A' in a speech bubbles

I would have to agree that a 5% increase may not seem like much for the consumer (especially if the product price is low already).  Also, a 5% increase in profits shows the consumers that the company is not trying to gouge the buyers.

Approved by eNotes Editorial Team
An illustration of the letter 'A' in a speech bubbles

The most likely company to have such an objective would be one that is relatively well established.  A 5% increase in profits is not a huge increase and therefore would not seem very good for a new and rising company.  So this would be more appropriate for a company like, for example, McDonalds.

Approved by eNotes Editorial Team
An illustration of the letter 'A' in a speech bubbles

Option e) would certainly apply to some sort of luxury item, like a high-end automobile or a designer watch. Most businesses have more of an interest in competitive pricing, but those companies attempting to establish a niche might try to raise their prices in the interest of pitching their product as luxury, or high quality.

Approved by eNotes Editorial Team