Marginal Analysis Might Take the Form of Such Questions As,"Should

question 134

Multiple Choice

Marginal analysis might take the form of such questions as,"Should we extend our hours to include Sundays?" or "What if we put more apples in the pie?" The basic principle is that

• A) as long as a marketing action breaks even, the action is worth taking.
• B) expected incremental revenues from pricing and other marketing actions must more than offset incremental costs.
• C) you "don't rock the boat" if your program is making a profit; instead, you "leave well enough alone."
• D) if you are not willing to take risks, even if the numbers tell you otherwise, your business will ultimately fail.
• E) marketing and finance are two different animals: "If it feels right in your gut … go for it."

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Definitions:

Resistance

The state that occurs when an influence attempt by a leader is unsuccessful: The target is opposed to carrying out the request and finds ways to either not comply or do a poor job.

Good-natured Kidding

Light-hearted teasing or joking among individuals in a friendly and well-intentioned manner.

Straightforward Statement

A clear and uncomplicated expression or declaration, without ambiguity or complexity.

Debasement

Demeaning or insulting oneself to control the behavior of another person.