A Marketing Simulation Model Can Be Used to Determine the Expected

question 21

True/False

A marketing simulation model can be used to determine the expected profit under uncertain customer loyalty,but an optimization model must be used to determine the optimal amount to spend on increasing customer loyalty.

---

Definitions:

Marginal Cost

The swell in aggregate expenditure due to the production of an additional unit of a product or service.

Environment Pollution

The contamination of the natural environment by harmful substances or activities, leading to adverse effects on ecosystems and human health.

Ethanol Subsidies

Financial incentives provided by governments to support the production, use, and development of ethanol as a form of renewable energy.

Demand For

Refers to the desire and ability of consumers to purchase goods or services at a given price.