Marilynn Castillo is a Marketing manager with a major firm. She is debating whether to conduct a marketing research study before commercializing a product. She believes that she will spend about $100,000 to conduct the study. If she launches the product without conducting the study and the product fails, her firm could suffer a loss of $2 million. One can say that Marilynn is doing:
A)an assessment of the research problem.
B)a cost-benefit assessment.
C)an assessment of the research design.
D)a time availability analysis for doing the research.
E)market sensitivity analysis of her options.

Question

Quizplus · Accepted Answer

Marilynn is conducting a cost-benefit assessment by comparing the cost of conducting the research study ($100,000) with the potential loss to her firm if the product fails ($2 million). This analysis will help her decide whether conducting the study is worth the investment.

Marilynn Castillo Is a Marketing Manager with a Major Firm