The research department of K   Ltd has recommended to the marketing department to launch a shampoo of three different types. The marketing manager has to decide one of the types of shampoo to be launched under the following estimated pay offs for various levels of sales: Estimated levels of sales 15, 000 10,000 5, 000 1. Egg shampoo 2. Clinic shampoo 3. Deluxe shampoo 3000 1000 -1000 3000 3000 250 1000 1000 1000 What will be the marketing manager’s decision if i. Maximum criterion is applied? ii. Minimax criterion is applied?  iii. Maximax criterion is applied?

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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(b) The research department of K   Ltd has recommended to the marketing
department to launch a shampoo of three different types. The marketing manager has to
decide one of the types of shampoo to be launched under the following estimated pay offs
for various levels of sales:
Estimated levels of sales
15, 000 10,000 5, 000
1. Egg shampoo
2. Clinic shampoo
3. Deluxe shampoo
3000
1000
-1000
3000
3000
250
1000
1000
1000
What will be the marketing manager’s decision if
i. Maximum criterion is applied?
ii. Minimax criterion is applied? 
iii. Maximax criterion is applied? 

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