Which Situation Best Illustrates the Escalation of Commitment

question 28

Multiple Choice

Which situation best illustrates the escalation of commitment?

• A)A marketing manager fails to state the disadvantages of a product,and only states the positive benefits of that product.
• B)A marketing manager does not give credit to a team member whose idea was instrumental for the product development.
• C)A marketing manager makes decisions using a majority voting technique,and does not listen to the minority viewpoint.
• D)A marketing manager continues to promote a specific brand,despite clear evidence that the brand is losing market share to competitors.

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Definitions:

Price Elasticity

A measure of the sensitivity of quantity demanded or supplied to a change in price, indicating how a product's demand or supply reacts to price changes.

Income Elasticity

A measure of how much the demand for a good is affected by changes in consumers' income.

Excise Tax

A tax levied on specific goods or services, such as tobacco or gasoline, typically imposed at the manufacturing or retail level.

Consumer Surplus

The separation between the theoretical price consumers are willing to pay for a good or service and the practical price they pay.