Solved

Mini Case 14- 1

question 74

Multiple Choice

Mini Case 14- 1
Elliott and Robin want to open a store and call it The Hamilton Home Shop. They have decided that it will feature household items such as decorative vases and planters, sheets and towels, bathroom accessories, and pictures. Their offerings will change from week to week depending on what's available from their wholesalers. Initially, they plan to sell irregulars and factory overruns, but they are flexible. Elliott has a real knack for spotting items others admire. People are always telling him what good taste he has. They must, however, be careful about how they spend the small amount of capital they have. One of their goals is to find an inexpensive location.
Once the store is up and operational, they hope they can use their cash flow to meet expenses. They plan to have no more than two full- time employees other than themselves and possibly some part- time help as the need arises. Customers will be allowed to make their own selections, but either Elliott or Robin will be there if they request some advice. Elliott and Robin plan on letting their customers use credit cards. They also feel it is important to have a generous merchandise return policy. Because Elliott and Robin are retailing novices, they want to join a retail organisation for advice and support and to share the costs of promotions. Elliott and Robin think that word- of- mouth will be their most powerful advertising tool. They expect to attract customers that appreciate the merchandise found at major department stores and mall speciality stores, but who would like the
lower prices.
-Refer to Mini Case 14- 1. What would be the best location for this outlet, given Elliott and Robin's perspective on their business?

Definitions:

Conditioned Response

A learned reaction or response to a previously neutral stimulus that has become conditioned through association with a stimulus that elicits an automatic response.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers an unconditioned response without any prior learning.

Conditioned Stimulus

A stimulus that was once neutral but, after being paired with the unconditioned stimulus, gradually induces a conditioned response.

Aplysia

A genus of sea slugs that are often used in neurological research due to their simple, large nerve cells.