Jorge's sales manager has told him that he will be given a $100 bonus if he can reduce his expenses by 5 percent during the next quarter. Jorge sells promotional products like mugs and calendars to companies to give to customers as a part of reminder advertising. What potential effect does this bonus have on Jorge's sales for the quarter?
A)It may reduce sales because he is reluctant to give out samples.
B)It may increase sales because customers respect his cost-saving techniques.
C)It may require Jorge to eliminate product demonstrations from his presentation.
D)It may increase his sales because customers will not get to handle samples during the presentation and will pay closer attention to the presentation.
E)There is no way to predict what will happen.

Question

Quizplus · Accepted Answer

The bonus may lead Jorge to reduce expenses by not giving out samples, which could negatively impact sales as customers may be less inclined to purchase without seeing or trying the products.

Jorge's Sales Manager Has Told Him That He Will Be