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Case 11.1 ​

question 8

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Case 11.1

Wayne is making a sales call on a new client company.The previous sales professional servicing this account,Tom,left to join another company.Wayne had liked Tom the moment he met him but thought of him as a bit of a slob because of the way he always chewed gum.

Wayne is calling on Cassandra,the operations manager for this company.She is a middle-level manager.As Wayne walks into Cassandra's office,he notes her expensively tailored suit,her professional demeanor,the simple cologne,and the lack of jewelry.Cassandra's appearance and office décor are reminiscent of the VP's office in Wayne's own company.

During the sales call Wayne is somewhat nervous.He stutters occasionally during the presentation,stumbles over the answers to a couple of Cassandra's questions,and tends to end his statements with a question.At the end of the call,Cassandra thanks him for his visit and the information,and walks out to the main entrance with him,making casual conversation.They shake hands,and Wayne goes on to his next sales call.As she walks back to her office,she thinks,"Should I do business with a company represented by someone with so little self-confidence?"
-Refer to Case 11.1.During the sales call,what image element probably most influenced Cassandra's impression of Wayne?​

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Definitions:

Marginal Revenue

The additional income received from selling one more unit of a good or service.

Total Cost

The sum of fixed and variable costs.

ATC

Stands for Average Total Cost, which is the sum of all production costs divided by the quantity of output produced, encompassing both variable and fixed costs.

MC

Marginal Cost represents the change in total cost that arises when the produced quantity of a good is incremented by one unit.

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