The general manager of a jewelry store would like to allocate radio ad dollars to the three markets in which the store has locations.The manager's review of secondary data shows that retail sales of jewelry are available by radio market area.Allotting the radio budget based on the percentage of sales in a given market would be an excellent way to:
A)Solve the manager's problem and satisfy the research objective.
B)Solve the manager's problem by predicting actual sales of pieces of jewelry.
C)Complicate the manager's problem on how much inventory to order.
D)Complicate the manager's problem and satisfy the objective.

Question

Quizplus · Accepted Answer

Allotting the radio budget based on the percentage of sales in a given market would solve the manager's problem of how to allocate the budget effectively across the three markets where the store has locations. It would help in targeting the markets where the store has a higher potential to generate more sales and maximize the returns on the radio ad investment. It would not complicate the manager's problem of how much inventory to order as it is a separate decision that depends on factors like sales volume, trends, and demand forecasting. However, allocating the ad budget based on predicted actual sales may complicate the problem by introducing additional uncertainty and assumptions about future sales.

The General Manager of a Jewelry Store Would Like to Allocate