You Make the Call-Situation 2

question 50

Essay

You Make the Call-Situation 2
Tomboy Tools are just that-tools for women who want to do their own home improvement and repair projects. Friends Sue Wilson, Mary Tatum, and Janet Rickstrew, all of Denver, Colorado, were concerned that the tools they used for home repair projects were designed for men, not women. So, they started Tomboy Tools, whose goal is to offer "professional grade tools for women, along with the information they need to know on how to use them," says Wilson. What is most interesting is how the products are sold - exclusively at in-home workshops led by Tomboy Tools' independent sales representatives. Instead of Tupperware or cosmetics, guests see basic home repair tools in action and learn simple home repair and improvement techniques. They chose the in-home approach to market their products because of its proven success with consumers - particularly females.
(Source: Susan Hirshon, The Costco Connection, April 2005, p. 15.)

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Definitions:

Price Decrease

A reduction in the cost of goods or services compared to previous prices.

Treasury Bonds

Long-term government debt securities with maturity dates typically beyond 10 years, regarded as low-risk investments.

Default Risk

The probability that a borrower will be unable to meet the required payments on their debt obligations.

Maturity Risk

The risk associated with the fixed term of securities; the risk that bond prices will decrease because of rising interest rates as maturity approaches.