Kendra Is a Retail Manager at Shonder Corp

question 83

Multiple Choice

Kendra is a retail manager at Shonder Corp. She needs to respond to customer complaints regarding a product and fix the problem. To do that, she has to decide on either scrapping the product or replacing it with a different brand. Based on the success and favorable online reviews of an alternate brand, she decides to switch to a different brand. In the context of the normative decision theory, which of the following decision styles has Kendra adopted in this scenario?

• A) The AI decision style
• B) The AII decision style
• C) The CI decision style
• D) The CII decision style

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Definitions:

Marginal Utility

Marginal utility is the additional satisfaction or utility that a consumer receives from consuming one more unit of a good or service.

Utility Maximization

A theory in economics that suggests consumers will allocate their resources to maximize their utility or satisfaction given their income and the prices of goods and services.

Consumption Good

A good that is utilized by consumers to satisfy their current wants or needs.

Utility Function

A mathematical representation of how consumers rank different bundles of goods or services according to their level of satisfaction or utility.