The low-ball strategy often aligns with sales-oriented pricing objectives.

Question

BlackTom AI · Accepted Answer

When evaluating the statement about the low-ball strategy and pricing objectives, start by clarifying what the low-ball approach entails and what sales-oriented pricing aims to achieve.
Option 1: True. The low-ball strategy involves offering a product at a very low initial price to attract customers and stimulate demand, with the expectation of generating further sales, upgrades, or add-ons. This aligns with sales-oriented pricing objectives, which prioritize increasing volume and market share in the short term. In many pricing models, the emphasis is on maximizing units sold or overall revenue through higher sales velocity rather than focusing solely on per-unit profit, so the low-ball tactic can be consistent with that objective.
Option 2: False. One might argue this statement is not universally true because low-ball pricing can be used for reasons beyond pure sales goals, such as entering a competitive market, penetrating a new segment, or triggering cross-selling, which still ties into sales objectives but could also be driven by strategic or marketing aims. Additionally, if the initial price is set so low that margins are unsustainable, it may harm profitability and long-term pricing strategy, which complicates the notion that it always aligns with sales-focused objectives. Some interpretations of pricing strategy emphasize value, profitability, or long-term brand positioning, where a perpetual low price may conflict with those goals.
Option 3: A nuanced consideration. In practice, the alignment depends on execution and context: the firm must recover margins through subsequent purchases or upsells, and customer perception of value must support sustainability. If these conditions are not met, the low-ball approach may drift away from genuine sales-oriented aims and become a tactic with mixed effectiveness.
Option 4: Another angle to keep in mind is that pricing objectives can be multi-faceted; even when sales volume is a priority, other objectives like market share protection, deterrence of competitors, or channel incentives can influence whether a low initial price truly aligns with the broader strategy. Therefore, the straightforward alignment is situational rather than universal.

MKTG1021.07|.08|.09 Fall 2025 Marketing Principles [Wang] MKTG1021-Final Exam- Requires Respondus LockDown Browser

The low-ball strategy often aligns with sales-oriented pricing objectives.

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