Fab Fabrics is a medium-sized chain of sewing and home craft stores. The company has committed to improving how it uses marketing measurements. Management of Fab Fabrics has determined that the minimum expected return on marketing dollars it requires in order to invest in a marketing activity is five dollars additional profit for every one marketing dollar spent. This is Fab Fabrics' ________.
A) key performance indicator
B) customer relationship factor
C) hurdle rate
D) copy test
E) advertising report card

Question

Quizplus · Accepted Answer

The minimum expected return on marketing dollars that management requires in order to invest in a marketing activity is known as the hurdle rate. It is a measure used by companies to evaluate the profitability of a potential investment.

Fab Fabrics Is a Medium-Sized Chain of Sewing and Home