Question

If a firm decides to stop its sales agents from pricing too aggressively to make sales by requiring the agent to obtain permission to reduce price below a specific threshold, and the manager only has one source of information, the sales agent, the solution would

a..Not work
b. Work in all circumstances
c. None of the above

Answer 1

Answer:

The correct answer is letter "A": Not work.

Explanation:

The case proposes having sales agents request managers for discount thresholds every time a salesperson is trying to give customers promotions since there is only one source of information. It will be a better idea to have a set threshold for every product offered in the store so sales agents would know the limits of prices they can offer as discounts.  

Thus, the idea of requesting managers for discounts in every sale is unlikely to work.