Which of the following is NOT an objective when companies set prices for their products?
(A) Take market leadership
(B) Indicate product quality
(C) Recoup research and development costs
(D) Discourage potential competitors from entering the market
(E) Encourage competitors to cut prices
Answer: A pricing objective is to discourage competitors from cutting their prices on similar product, so choice E is not true, but is the correct answer to the question.