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Nataly_w [17]
2 years ago
12

Besides lowering price, what actions can Jackie propose to improve contribution margin?

Business
1 answer:
alexira [117]2 years ago
6 0

Besides lowering the price, Jackie can improve contribution margin by ensuring that:

  • Quality remains the same or better
  • the company leverages social media marketing which is cheaper than conventional marketing and is better targeted.

<h3>What does price reduction do?</h3>

Price reduction (if all other factors remain constant) helps to drive up demand. This is consistent with the Law of Demand in basic Economics.

If Jackie is trying to drive up profit margin, they must thus consider the options given above.

Learn more about lowering prices ta;
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