The following does not represent the pricing objectives of a firm:

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → Procuring supplies of goods from different sources

Option (1) Procuring supplies of goods from different sources — Not a pricing objective (Correct). Buying goods from suppliers is a purchase activity. The price a firm charges its customers has nothing to do with it.
Option (2) Attaining product quality leadership — A pricing objective (Incorrect). A firm that wants to be known for the best quality charges a higher price to cover the cost of quality and research.
Option (3) Obtaining market share leadership — A pricing objective (Incorrect). The firm keeps its price low, so that more people buy the product and its share of the market grows.
Option (4) Surviving in a competitive market — A pricing objective (Incorrect). A firm facing strong competition or falling demand may cut its price, for example by offering a discount, just to stay in the market.

NCERT (2026-27 Edition): “Pricing Objectives: Pricing objectives are another important factor affecting the fixation of the price of a product or a service. Generally the objective is stated to be maximise the profits. …”

“Apart from profit maximisation, the pricing objectives of a firm may include:
(a) Obtaining Market Share Leadership: If a firms objective is to obtain larger share of the market; it will keep the price of its products at lower levels so that greater number of people are attracted to purchase the products;
(b) Surviving in a Competitive Market: If a firm is facing difficulties in surviving in the market because of intense competition or introduction of a more efficient substitute by a competitor, it may resort to discounting its products or running a promotion campaign to liquidate its stock; and
(c) Attaining Product Quality Leadership: In this case, normally higher prices are charged to cover high quality and high cost of research and Development.”

The following does not represent the pricing objectives of a firm:

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → Procuring supplies of goods from different sources

Option (1) Procuring supplies of goods from different sources — Not a pricing objective (Correct). Buying goods from suppliers is a purchase activity. The price a firm charges its customers has nothing to do with it.
Option (2) Attaining product quality leadership — A pricing objective (Incorrect). A firm that wants to be known for the best quality charges a higher price to cover the cost of quality and research.
Option (3) Obtaining market share leadership — A pricing objective (Incorrect). The firm keeps its price low, so that more people buy the product and its share of the market grows.
Option (4) Surviving in a competitive market — A pricing objective (Incorrect). A firm facing strong competition or falling demand may cut its price, for example by offering a discount, just to stay in the market.