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According to the Three-Component Model, Why Do Primacy and Recency

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According to the three-component model, why do primacy and recency occur?

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Definitions:

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the net profit from the investment by its cost.

Traceable Fixed Expense

Costs that can be directly linked to a specific department, product, or segment of a business and do not change with the level of output or sales.

Net Operating Income

A company's revenue minus its operating expenses, not including taxes and interest charges, representing the profit from core business operations.

Price

Refers to the monetary value assigned to a product or service, indicating what a buyer must pay to obtain it.

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