Which pricing strategy aims to increase sales volume by setting lower prices?

Disable ads (and more) with a membership for a one time $4.99 payment

Prepare for UCF MAR3023 Exam 4. Study effectively with quizzes and flashcards. Enhance understanding with multiple choice questions, each featuring hints and explanations. Be confident and exam-ready!

The chosen answer, which focuses on sales-oriented pricing, is correct as this strategy is specifically designed to increase sales volume through the implementation of lower prices. The primary goal of sales-oriented pricing is to attract a larger customer base by making products more affordable, thereby increasing the total number of units sold. This is particularly effective in competitive markets where price sensitivity is high among consumers.

Sales-oriented pricing typically prioritizes market share over short-term profits. By offering lower prices, a business aims not only to attract new customers but also to encourage repeat purchases and build brand loyalty. This approach can lead to economies of scale, where increased sales volume can offset reduced profit margins per unit.

In contrast, target return pricing focuses on achieving a specific financial return, maximizing profits centers on optimizing profit margins without necessarily prioritizing volume, and competitor-oriented pricing sets prices based on competitors' actions rather than directly aiming to boost sales volume. Each of these strategies has a different core objective, making sales-oriented pricing unique in its focus on volume growth through lower pricing.