Final answer:
To decide where Recreation Unlimited should allocate its budget, a cost/benefit analysis should be conducted for each option—website improvement and digital marketing. This analysis will identify which strategy is likely to yield more demand for emeralds and a higher quantity of quality emerald sales, and ultimately greater customer satisfaction and business performance.
Step-by-step explanation:
Approaching Recreation Unlimited's Digital Strategy Decision
When considering whether Recreation Unlimited should improve their website experience or increase digital marketing given a constrained budget, the appropriate approach would be to carry out a rigorous cost/benefit analysis. This analysis will involve listing down the marginal costs and marginal benefits of both options. The goal is to compare what is sacrificed (costs) versus what is gained (benefits). For instance, improving user experience on the website could potentially increase the demand for emeralds, as clients are likely to find a user-friendly website more trustworthy and easy to navigate, which can lead to more sales.
In regard to the impact on the quantity of high-quality emeralds sold, improved information and a better website experience tend to increase consumer confidence, thereby increasing the likelihood of purchasing higher-priced items like quality emeralds. On the other hand, increasing digital marketing could help in reaching a wider audience and elevating brand recognition, which might also lead to an uptick in sales, although without website improvements, conversion rates might not reach their potential peak.
Additionally, employing a decision-making process that accounts for producing the greatest happiness or satisfying the greatest number of interests for the most people can be helpful. The strategy chosen should enhance customer satisfaction and lead to performance increase. Utilizing a T-chart for the cost/benefit analysis can provide a visual aid during decision-making.