Scenario 1-4 Target, a Global Discount Retailer, Generates Around 65 Billion Dollars

question 62

Multiple Choice

Scenario 1-4
Target, a global discount retailer, generates around 65 billion dollars in sales annually. Additionally, the company employs more than 360,000 people worldwide. Target stores carry just about every major brand imaginable. Target also carries a number of its own brands including Market Pantry, Archer Farms, and Up and Up. Each of the brand labels appears on different products throughout the store-for example, the Archer Farms label appears on the retailer's highest quality foods. The Market Pantry label appears on food items as well; however, these items are often sold at a significantly lower price. The Up and Up label is on a large range of products ranging from paper products to household cleaning supplies. 
-(Scenario 1-4) In a majority of Target's promotions,the store is marketed as "upscale," and this is demonstrated through its prices,which are generally higher than its biggest competitor,Walmart.Still,even in times of recession,Target continues to increase its annual revenues and retain many of its customers.This can be attributed to: 

• A) Target's low brand equity. 
• B) the inelasticity of demand shown by many of the company's customers. 
• C) Target's increase in gross domestic product (GDP). 
• D) the elasticity of demand shown by many of the company's customers.

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Definitions:

Automated Inventory Control

Systems or processes that use technology to manage and optimize stock levels, ordering, and storage of goods with minimal human intervention.

Strip Mall

A row of retail stores or service outlets sharing a common parking area, usually located in suburban areas.

Suburban Shopping Mall

A large retail complex located in suburb areas, typically enclosed, featuring a variety of stores, restaurants, and entertainment options.

Neighborhood Stores

Small retail outlets located within residential areas that cater to the day-to-day needs of the local community.