The senior manager at a ﬁrm sets a sales target of 20 000 units for the month. Most other ﬁrms in the market also have similar targets. However, the maximum possible sales in the market was found to be 35 000 units per month. This suggests that:

Question

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Setting a sales target of 20,000 units when the market could potentially support up to 35,000 units suggests that the senior manager is opting for a satisfactory level of achievement rather than maximizing growth or profits. This is indicative of satisficing behavior, where a decision-maker aims for an acceptable level of performance rather than the optimal one.

The Senior Manager at a ﬁRm Sets a Sales Target