E-Gadgets Is a Chain of Electronics Stores That Specializes in Devices

question 98

Multiple Choice

E-Gadgets is a chain of electronics stores that specializes in devices and gadgets incorporating cutting-edge technologies. The company has more than 170 stores located in large cities throughout the Southeast and Midwest. E-Gadgets has chosen the locations of its stores so that most customers living in upper middle class and wealthy neighborhoods can get to an E-Gadgets store in less than 15 minutes. E-Gadgets is providing its customers with:

• A) scrambled merchandising.
• B) allocative utility.
• C) place utility.
• D) saturation marketing.

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Definitions:

Variable Product Cost

Costs that vary directly with the volume of production, such as materials and labor directly involved in manufacturing.

Fixed Period Cost

Costs that remain constant for a specific period of time regardless of the level of output or activity.

Administrative Cost

Expenses related to the general operation of a company, including office salaries, utilities, and legal fees, but not including production costs.

Toll-free Telephone Line

A phone number that allows callers to reach businesses without incurring charges, often used for customer support.