Which of the Following Statements Does Not Apply to Convenience

question 350

Multiple Choice

Which of the following statements does not apply to convenience goods?

• A) Consumers are brand loyal to convenience products and are not likely to substitute other brands.
• B) Convenience products require minimal shopping effort.
• C) Marketing of convenience products requires intensive exposure of these goods in as many stores as possible.
• D) Consumers tend to feel that the most desirable retail facility for convenience products is the closest one.
• E) Colas, gasoline, and bread are good examples of convenience goods.

---

Definitions:

Cost of Capital

The rate of return that a business needs to generate in order to cover the cost of generating new capital, which can include debt and equity.

NPV

Net Present Value (NPV) is the calculation used to find the present value of cash flows at a specific discount rate, often used to assess the profitability of an investment.

Payback Period

The amount of time it takes for an investment to generate an amount of income or cash flows to recover the initial capital outlay.

Cash Flows

The net amount of cash and cash-equivalents being transferred into and out of a business, measuring financial health.