The Zara Experience Involves a Regular Supply of New Stock

question 24

Multiple Choice

The Zara experience involves a regular supply of new stock on the shelves, because of which customers tend to visit Zara's stores more often than they visit other retailers' stores. However, such a policy will become more expensive to maintain if:

• A) star designers demand a higher fee for its designs.
• B) PDAs are not used.
• C) fuel costs rise.
• D) Zara's horizontal integration fails.
• E) Zara outsources its production process.

Know the distribution channels for consumer products and their implications for market reach and efficiency.

Understand pricing strategies and their psychological impacts on consumer behavior.

Distinguish between different marketing channels used for the distribution of various products and services.

Comprehend the rationale behind price setting strategies for new and existing products, including reactions to competition.

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Definitions:

Homeostasis

The process through which living organisms maintain equilibrium while adapting to circumstances that are best for their continuation.

Self-transcendence

A psychological state or quality of going beyond personal needs and interests, often involving spiritual experiences or altruism.

Self-actualization

A psychological concept from Maslow's hierarchy of needs, referring to the realization or fulfillment of one's talents and potentialities.

Belongingness

The human emotional need to be an accepted member of a group, whether it is family, friends, colleagues, or within a community.