Question

Steven, a marketing manager, wants to budget the advertising for a new product launch. He is trying to determine the amount of money that the company can afford to spend on advertising. Which criterion of decision making is he focusing on?

Answer 1

Answer:

Economic feasibility

Explanation:

The cost and benefits including the capability analysis and non financial aspects that are worth considering are often referred to as feasibility study of the project. Furthermore, the study of the costs and benefits drawn from the project alone is known as economic feasibility of the project.

In the given scenario, the company is considering how much the advertising cost must be budgeted to drive maximum benefits which is cost benefit analysis and is economic feasibility studies.