A Taste of Greece, a Restaurant Chain That Is Known

question 191

Multiple Choice

A Taste of Greece, a restaurant chain that is known for its Extra Juicy Gyro sandwich, wants to encourage repeat purchases and create long-term customers. Which sales promotion should it employ?

• A) a loyalty program that allows buyers to earn free food after making 10 purchases
• B) a two-for-the-price-of-one deal that is only offered on New Year's Eve
• C) a coupon for a free soft drink with a gyro purchase
• D) a game with food prizes
• E) free Extra Juicy Gyro samples at local fairs and concerts

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Definitions:

Fixed Asset Turnover

A financial ratio that measures a company's efficiency in using its fixed assets to generate sales.

Net Fixed Assets

The value of a company's property, plant, and equipment minus depreciation, indicating the tangible assets used in operations.

Receivables Turnover

A ratio that measures a company's efficiency in collecting its sales on credit over a period of time.

Accounts Receivable

Funds owed to a company by customers for products or services that have been delivered or used but not yet paid for.