In the late 90s, Sears spent much of its communication budget advertising the "Softer Side of Sears" campaign since it felt the customer knew very little of Sears' apparel assortments and thus there would be a substantial return from advertising apparel versus advertising the more known appliances. What principle for budget allocation was Sears potentially using?

Question

Quizplus · Accepted Answer

Allocation decisions, like budget-setting decisions, should use the principles of marginal analysis. The retailer should allocate the budget to areas that will yield the greatest returns. This approach is referred to as the high-assay principle.

In the Late 90s, Sears Spent Much of Its Communication