When a Company Does NOT Have Sufficient Capacity to Fill

question 83

Multiple Choice

When a company does NOT have sufficient capacity to fill an order for less than the current selling price, what additional factor must be taken into consideration?

• A)The decision process is the same whether there is sufficient capacity or not.
• B)How will the lack of capacity affect the quality of the product?
• C)Can resources be transferred from producing product to sell at the current price to producing product at the special price?
• D)opportunity costs

---

Definitions:

Sensory Overload

When the amount of information to be processed exceeds the individual’s capacity to sort out what is relevant from what is not.

Oversalience Effect

The tendency to overattribute significances to certain stimuli or information over others, which may not be justified.

Central and Peripheral

This refers to the two routes to persuasion proposed by the Elaboration Likelihood Model: the central route, which involves careful and thoughtful consideration of the arguments (content of the message), and the peripheral route, which involves reliance on cues outside the content of the message.

Systematic and Heuristic Processing

Two modes of thinking where systematic processing involves deliberate, analytical evaluation of information, while heuristic processing is based on automatic, quick judgments.