One of ValuTech's Objectives for the Year Is to Bring

question 48

Multiple Choice

One of ValuTech's objectives for the year is to bring down the firm's production costs by 5 percent. To meet this objective, managers have suggested the following alternatives:
(1) Use alternate suppliers who can provide raw materials at a lower cost.
(2) Adopt cutting-edge technology that makes the production process more efficient.
-What is the underlying assumption in the first alternative?

• A) Customers associate high prices with high quality and vice versa.
• B) Customers are more quality conscious than price sensitive.
• C) Low-cost raw materials will not affect the overall quality of the final product.
• D) The company's relationship with its current suppliers is strong.

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Definitions:

Introverted Tendencies

Characteristics or behaviors of an individual that show a preference for inward-focused experiences and activities, often entailing less social interaction.

Stimulating Environments

Refers to settings or situations that provide a range of sensory and intellectual stimuli, potentially enhancing cognitive function and emotional well-being.

Behaviorally Neutral

A state or action that does not have a significant positive or negative impact on behavior.

Partial Reinforcement

A conditioning principle where a response is only occasionally rewarded, leading to stronger and more persistent behavior than if the reward was given every time.