Business Objectives: Maximisers and Satisficers
- AQA, Edexcel, OCR, IB
Last updated 21 Mar 2021
Maximisers behave in a traditional economic way and always try to make the best possible choice from the available alternatives.
Satisficers examine only a limited set of alternatives, and choose the best between them
Many businesses who adopt satisficing use rules of thumb rather than complex pricing policies.
Instead of seeking the optimum profit-maximising price and output, they rely on simple-cost plus approaches e.g. they charge the unit cost of supply + 10%
Satisficers may be the managers of a business who are more concerned with increasing revenue and/or market share rather than pure profit maximisation.
Maximising Total Revenue
Sales maximisation subject to making at least normal profit