Wal-Mart Developed a Web Site ( HYPERLINK "Http://www

question 1

Short Answer

Wal-Mart developed a web site ( HYPERLINK "http://www.walmart.com/" walmart.com) that most consumers were unaware of. To entice customers to visit its web site, Wal-Mart sold roses for $29 a dozen the weeks prior to Mother's Day. This price included delivery and was considerably less than what was offered by most other flower retailers. Why did Wal-Mart offer this great deal?
A. Wal-Mart realized customers are active and need a reason to visit a web site
B. Wal-Mart did not want to engage in price competition at its traditional stores
C. Wal-Mart wanted quick customer feedback on how people rated its web site
D. Wal-Mart wanted to take advantage of how consistent service offerings become with customer involvement
E. Customers are passive and will always locate the best deals

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Definitions:

Flotation Costs

Expenses incurred by a company in issuing new stocks or bonds, including underwriting, legal, and registration fees.

Tax Rate

The rate at which taxes are imposed on the income of a person or business.

Expected Growth Approach

A method for estimating a company's future growth by analyzing historical data, trends, and external market factors.

Weighted Average Cost

A calculation that assigns weights to different costs or inputs, based on their relative importance or proportion.