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BUS 475 SUNYCB Business & Society Electronics Equipment Sales Representative Case Study

BUS 475 SUNYCB Business & Society Electronics Equipment Sales Representative Case Study

BUS 475 SUNYCB Business & Society Electronics Equipment Sales Representative Case Study

Question Description

A sales representative for a large manufacturer of consumer electronics equipment headquartered in Los Angeles, California, has courted a buyer from a nationwide chain of 319 retail stores for more than a year. At company expense, the buyer was flown to Los Angeles from Trenton, New Jersey, with his spouse, for a three-day sales presentation. The company is paying all expenses for this trip and for the couple to attend a Los Angeles Dodgers baseball game and dine at fine restaurants. During the second day of meetings, the buyer discusses a one-year, $40 million order. The chain that the buyer represents has not sold the company’s products before, but once it starts, reorders are likely. At dinner that evening, the buyer mentions that he and his wife have always wanted to visit SeaWorld in San Diego. While they are in Southern California and so close, they would like to fly down. It is clear that he expects the company to pay for this trip and that he will delay making a commitment for the $40 million order until he gets a response. The company already spent $4,200 for the buyer’s trip to LA. The San Diego excursion would cost about $500. The marketing manager estimates that the company can make 9 percent gross profit on the sale. The sales representative stands to receive a 0.125 percent commission over base salary. What should the representative do?

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