Final answer:
Raghu is debating IMC budget allocation for his ski store. Personal selling is recognized as expensive (option b) but can be justified as it offers buyers valuable guidance, akin to having perfect information in decision-making scenarios like Marvin's car purchase.
Step-by-step explanation:
Raghu is considering how to allocate the Integrated Marketing Communications (IMC) budget for his new ski equipment store, and he is correct in thinking that knowledgeable salespeople can aid buyers in making purchase decisions. Contrary to the other IMC alternatives presented, personal selling is often considered to be expensive rather than easy, ineffective, or overrated.
In the context of imperfect information, which mirrors the real-world scenario, sales associates who are well-informed can build trust and guide customers effectively, potentially justifying the higher cost associated with personal selling compared to other IMC methods. This situation is analogous to Marvin's dilemma when purchasing a car in a world where sellers may hide information; the expertise of salespeople can serve as a source of perfect information, thus influencing the buyer's decision positively.