Hoffman and bateson state that effective reward systems (for service employees) must pass seven test. one of these is the test. basically, this test is meant to guarantee that the motivating effects of a reward will last for a long time. plaques and trophies, for example, last longer than a company-sponsored night on the town. thus, a plaque or a trophy will pass this test and a paid night on the town will not.

Total marketing effort is a term used to describe the critical decision factors that affect demand: price, advertising, distribution, and product quality. define the variable x to represent total marketing effort. a typical model that is used to predict demand as a function of total marketing effort is based on the power function: d = axb suppose that a is a positive number. different model forms result from varying the constant b. sketch the graphs of this model for b = 0, b = 1, 0< b< 1, b< 0, and b> 1. (we encourage you to use excel to do this.) what does each model tell you about the relationship between demand and marketing effort? what assumptions are implied? are they reasonable? how would you go about selecting the appropriate model?