Which Activity Engaged in by DenimExpress Best Exemplifies Innovation

question 12

Multiple Choice

Which activity engaged in by DenimExpress best exemplifies innovation?

• A) DenimExpress cut the prices of its products by 10 percent.
• B) DenimExpress entered the Chinese market.
• C) DenimExpress offered a "me-to" product similar to that of a competitor.
• D) DenimExpress developed a new business model by selling directly to customers.
• E) DenimExpress cut its costs by 10 percent.

Comprehend the impact of direct and indirect distribution channels on reaching target markets.

Understand the retail strategies used by businesses to enhance customer service and experience.

Know the concept of distribution intensity and its application in market coverage.

Distinguish between different types of nonstore retailing and their strategic implications.

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Definitions:

Leisure

Free time when one is not working or occupied; time available for ease, relaxation, and activities one enjoys.

Substitution Effect

Changes in what consumers purchase, brought about by alterations in the relative costs of goods, persuading consumers to opt for alternatives over their usual choices.

Income Effect

The correlation between income changes in an economy or for individuals and their effect on the quantity of goods and services demanded.

Opportunity Cost

The value of the next best alternative that is foregone when a decision is made to choose one option over another.