Executives at Kelsey Corp

question 1

Multiple Choice

Executives at Kelsey Corp.are arguing about whether or not they should increase prices for the company's products by 15-20 percent.Which of the following could be used as an argument against increasing prices?

• A) The input costs of raw materials are expected to increase further in the coming months.
• B) Customers are loyal to the Kelsey brand because they know that the company uses high-quality ingredients.
• C) Kelsey's competitors have announced price increases.
• D) One of Kelsey's major competitors recently went bankrupt.
• E) Market research reveals that demand for Kelsey's products is very much affected by the price.

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Definitions:

Input-Outcome Ratio

A concept in equity theory referring to the balance between an individual's contributions to and the rewards they receive from their work or relationship.

Positive Reinforcement Technique

A behavior modification strategy that involves rewarding desirable behaviors to increase the likelihood of their recurrence.

Intrinsic Motivation

The drive to perform an activity for its own sake and personal rewards, rather than for some external reward or pressure.

Automobile Showroom

A retail space where new or used cars are displayed for sale to potential buyers.