David Lucero Is the Regional Sales Manager for Western Canada

question 274

Essay

David Lucero is the Regional Sales Manager for Western Canada at Kapster Enterprises.He enjoys his job and earns a good enough salary to comfortably support his wife and two children in an upscale area of Calgary.He was recently offered a promotion to General Sales Manager for Canada based in Toronto.The promotion would have increased his salary by $10,000 per year and placed him a notch higher on the organization chart.However, the move to Toronto would have resulted in much higher housing expenses, and David's wife would have had to go back to work if they wanted to maintain the same overall living standards.David knew that he would make an excellent GM, but, after some consideration, he declined the offer.Use expectancy theory to explain why David may have turned down the promotion.

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Definitions:

Basic Research

Scientific study aimed at increasing our fundamental understanding and knowledge rather than developing new applications or products.

Commercial Applicability

The suitability or potential of a product or invention to be used, marketed, or sold in a commercial context.

Expected-Rate-of-Return Curve

A graphical representation showing the expected return on investment for varying levels of risk or different scenarios.

Interest-Rate Cost-of-Funds Curve

A graphical representation showing the relationship between the cost of funds for financial institutions and the interest rates over different periods.