The operations manager suggests a hike in the prices to improve productivity. However, the marketing manager rules this option out. What could be the possible reason for this?
A) Product prices are not related to organizational productivity.
B) Selling price is negatively correlated to organizational productivity.
C) The industry is characterized by intense competition.
D) Such an action would lead to reduced employee satisfaction.

Question

Quizplus · Accepted Answer

The marketing manager rules out the option of hiking prices to improve productivity, which suggests that the industry is characterized by intense competition. In a highly competitive industry, increasing prices could lead to decreased sales and market share, which would negatively impact productivity.

The Operations Manager Suggests a Hike in the Prices to Improve