Author Question: In an attempt to reverse a sales slump, the Presto Cycles Company doubled its advertising ... (Read 53 times)

lindiwe · **on:** Jul 7, 2018

In an attempt to reverse a sales slump, the Presto Cycles Company doubled its advertising expenditures. When this failed to reverse the downward spiral, they invested even more money in advertisements.

This trend continued until the firm was forced into liquidation. Presto Cycles actions are an example of
A) saturation bombing. B) poor judgment. C) rules-of-thumb. D) escalation of commitment.

Question 2

Workers are more likely to follow their employers rules when they have reason to believe that the organizations procedures are inherently fair.

Indicate whether the statement is true or false