Moran Dry Cleaners Operates in a Medium-Sized Community

question 22

Multiple Choice

Moran Dry Cleaners operates in a medium-sized community. Its customers all live within a 20-mile radius of the cleaners. Moran provides its regular customers with several alternative pickup and delivery schedules rather than a single weekly pickup and delivery. It will pickup clothes in the morning and deliver them back clean in the afternoon if that is what a customer needs. Moran has found the increase in its total number of customers because of this service more than pays its additional operation expenses. This pickup and delivery system is an example of:

• A) Mass customization
• B) Mass marketing
• C) Niche marketing
• D) Focused marketing
• E) Transactional marketing

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Definitions:

Nominal Rates

Interest rates or rates of return that have not been adjusted for inflation, representing the face value of financial products.

Real Rates

Interest rates or rates of return that have been adjusted for inflation.

Gordon Growth Model

The Gordon Growth Model is a method to determine the intrinsic value of a stock based on a future series of dividends that grow at a constant rate.

Fisher Effect

An economic theory that describes the relationship between inflation and both real and nominal interest rates.