Becky tells her sales representatives their goal is to generate at least a 15 percent return on investment for all the computer desks they sell. Becky is using a________ pricing strategy.

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BlackTom AI · Accepted Answer

The question presents Becky guiding sales reps toward a specific financial target embedded in pricing strategy. 
Option 1: 'target profit' would imply pricing to achieve a fixed profit level per unit or overall, but the stem specifies a return on investment percentage, not just profit per unit. This makes 'target profit' an unlikely match for the given context.
Option 2: 'status quo' pricing focuses on maintaining current prices to match competitors or market norms, not on achieving a defined ROI percentage. Since the scenario emphasizes a calculated return goal, this choice does not fit.
Option 3: 'target return' is a pricing approach where prices are set to achieve a specified return on investment. The phrase 'generate at least a 15 percent return on investment' directly aligns with the concept of a target return pricing strategy, making this option conceptually appropriate.
Option 4: 'sales orientation' pricing centers on maximizing sales volume rather than meeting a particular ROI target, which conflicts with the explicit ROI emphasis in the prompt. This misalignment suggests it is not the right fit for the described strategy.
Option 5: 'competitive parity' aims to set prices to match competitors and maintain relative positioning, rather than pursuing a defined ROI outcome. Since the scenario uses ROI as the performance goal, this option is not correct in the given context.

MKTG:3000 Fall25 Final Exam - Requires Respondus LockDown Browser

Becky tells her sales representatives their goal is to generate at least a 15 percent return on investment for all the computer desks they sell. Becky is using a________ pricing strategy.

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