Why Has the Practice of Running Frequent Sales Often Backfired

question 22

Multiple Choice

Why has the practice of running frequent sales often backfired for retailers?

• A)Fewer shoppers are interested in bargain hunting.
• B)Changing price points have had little effect on store images.
• C)Consumers become trained to buy only when the retailer is having a sale.
• D)Shoppers are more interested in store image than in price points.
• E)Department stores have resisted using everyday-low-pricing strategies.

---

Definitions:

Operating Cash Flow

Funds arising from an enterprise's standard operational processes, demonstrating whether the enterprise can generate adequate positive cash flow to support and increase its activities.

Millions

A numerical unit representing one thousand thousand, or 1,000,000, often used to quantify currency, population, or other large-scale counts.

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating short-term financial health and liquidity.

Operating Cash Flow

Cash generated from the normal business operations of a company, excluding capital expenditures and investment income or expenses.