If a Company Must Decrease Its Sales Price of a Product

question 108

Multiple Choice

If a company must decrease its sales price of a product while all of the company's expenses remain constant, what will happen to return on investment (ROI) ?

• A)ROI will decrease.
• B)ROI will increase.
• C)ROI will not be affected.
• D)We cannot determine the effect from the information provided.

---

Definitions:

Impulse Purchases

Items bought without prior planning or consideration, often triggered by emotions or the immediate appeal of the product.

Self-Actualization

When a person is completely satisfied with his or her life.

Habitual Decision Making

A type of consumer behavior characterized by little or no conscious effort, often because of brand loyalty or the routine nature of the product.

Internal Sources

Information or resources that come from within an organization, such as employee knowledge, company databases, or internal reports.