The "Iceberg Principle

question 120

Multiple Choice

The "iceberg principle":

• A) explains why some firm's sales are "cooler" that others.
• B) explains why some customers are more profitable than others.
• C) suggests that sales will vary from one territory to another.
• D) suggests that much good information may be hidden in summary data.
• E) says that sales reps should never make "cold calls" on customers.

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Definitions:

Unregulated Market

A market where economic activities are freely carried out without governmental intervention in terms of prices, production, and distribution.

Shortage

A situation where the demand for a product or service exceeds the supply available at a specific price.

Product

Any good, service, or idea that can be offered to a market to satisfy a want or need.

Excess Supply

A situation where the quantity of a good or service supplied is greater than the quantity demanded at the current price.