Setting prices as low as possible typically supports which of the following pricing objectives?
A. Market share leadership
B. Product quality leadership
C. Current profit maximization
D. Survival
E. Just-in-time policy
Answer: (C) Setting low prices is consistent with penetration pricing and current profit maximization. Therefore, (C) is the logical answer. Low prices do not always translate into higher market share. Thus, (A) is incorrect. Similarly, low prices do not guarantee superior product quality (B) or survival in the market (D). Just-in-time is an inventory management tool that has very little to do with low prices; thus, (E) is also incorrect.