Question

When a firm has its products prices high because it hopes that consumers will associate high prices with high quality, it is focused on which of these pricing objectives? 1. Matching the status quo prices 2. Maximizing profits 3. Creating an image 4. Achieving greater market share 5. Building traffic

Answer 1

When a firm has its products prices high because it hopes that consumers will associate high prices with high quality, it is focused on which of these pricing objectives? Maximizing profits. Maximizing profits refers to a firm doing all they can to get the most return on their products. When a firm is able to maximize their profits, they typically are making the most money on their items and allowing for large amounts of money to be reinvested into the company.