📊 GMAT Exam Prep

To achieve the highest *net profit* from increased sales after 2 months, while simultaneously ensuring the *lowest marketing expenditure*, which combination of pricing strategy and marketing channel should the business choose?

A Pricing P1 and Marketing M1
B Pricing P1 and Marketing M2
C Pricing P2 and Marketing M1
D Pricing P2 and Marketing M2

✓ Correct Answer: Option D

This question requires calculating outcomes for each of the four combinations. P2 (decrease price 5%, 15% sales increase M1, 10% M2) generates higher sales volume. M2 (Email Marketing, $500 cost, 3% sales increase) has the lowest marketing cost. The combination (P2+M2) would yield the highest net profit despite lower individual sales increase, due to cost efficiency and higher base sales from P2.

💡 Why is D) the correct answer?

The correct answer to the question "To achieve the highest *net profit* from increased sales after 2 months, while simultaneously ensuring the *lowest marketing expenditure*, which combination of pricing strategy and marketing channel should the business choose?" is Option D: Pricing P2 and Marketing M2.

The other options — A) Pricing P1 and Marketing M1, B) Pricing P1 and Marketing M2, C) Pricing P2 and Marketing M1 — are incorrect for this GMAT Exam Prep question. As explained above: This question requires calculating outcomes for each of the four combinations. P2 (decrease price 5%, 15% sales increase M1, 10% M2) generates higher sales volume. M2 (Email Marketing, $500 cost, 3% …

📚 About This GMAT Exam Prep Practice Question

This 4-level GMAT Exam Prep question from the Integrated Reasoning topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free GMAT Exam Prep practice test or use flashcards for spaced repetition review.

Related GMAT Exam Prep Questions