The Owner of a Pet Grooming Salon Wants to Calculate

question 59

Multiple Choice

The owner of a pet grooming salon wants to calculate customer equity.Which of the following would be a step the owner of this pet grooming salon should complete?

• A)Compare investments made by the salon owner in acquiring the customer to the total amount of purchases made by the customer.
• B)Compare investments made by the salon owner to retain this customer to the total amount of taxes the salon owner pays.
• C)Ask the customer if she is planning on getting any new pets.
• D)Investigate how many other pet grooming salons are within five miles to determine the likelihood of this pet owner returning to this salon.
• E)Determine the age of the pet to estimate how much longer this customer may need the services of the salon.

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, opposite of a normal good.

Downsloping

Refers to a curve or line moving downwards on a graph, often used in economics to describe demand curves where price and quantity demanded move in opposite directions.

Demand and Supply

The fundamental economic concept that describes the amount of a specific good or service that is available to consumers and the desire of consumers for it, considered as functions of its price.

Consumer Incomes

The total amount of money earned by consumers from various sources like wages, investments, and government benefits, which affects their purchasing power and economic behavior.