Instead of Trying to Appeal to the Entire Marketplace, Smart

question 28

Multiple Choice

Instead of trying to appeal to the entire marketplace, smart marketers and smart companies will try to find out

• A) what will appeal to high-end customers.
• B) which customers might like their product, and how to get the product into their hands.
• C) which customers are price sensitive.
• D) which customers have brand loyalty and seek a brand image similar to other brands they like.

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Definitions:

Ending Inventory

The total value of goods available for sale at the end of an accounting period.

Cost-to-Retail Ratio

A method used in retail to calculate the estimated ending inventory value at retail prices by dividing the cost of goods available for sale by the retail price of the goods.

Net Markups

The overall increase in the selling price of goods, net of any reductions or markdowns, calculated over the cost price.

Ending Inventory

The total value of all inventory in stock at the end of an accounting period, calculated using the cost of goods sold formula.