Department Store Owner Brendan McGowan Decided to Make a Gutsy

question 271

Multiple Choice

Department store owner Brendan McGowan decided to make a gutsy move with his high-end Western Son stores. Rather than focus on the upscale, luxury market that the store attracted earlier in the decade, he focused on bringing in clothing with more mass appeal. The stores succeeded in turning around downward trending sales. In conjunction with your understanding of the product life cycle, which of the following statements summarizes the marketing strategy?

• A) Western Son recognized that it was not competing well with its traditional higher income market. It decided to change its product offering and price to appeal to a broader market and increase sales and profits.
• B) Western Son stores recognized several markets that it could reach with its upscale clothing lines.
• C) Western Son positioned itself against, rather than with, the competition. It decided to adhere to its price leadership position.
• D) Western Son knew that in order to re-invent itself, it was going to have to practice the same marketing strategy followed by Walmart and other discount stores. It would make all marketing decisions based on cost. The price on an item need only exceed what it cost to make and ship it. Falling prices became the norm.

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Definitions:

Negotiation

A process where two or more parties discuss an issue with the aim of reaching a mutually acceptable agreement.

Proposal

A plan or suggestion, especially a formal or written one, put forward for consideration or discussion by others.

Protective Gear

Clothing or equipment designed to protect the wearer's body from injury or infection.

Inclusive Decision-making

A decision-making process that involves and respects the perspectives and contributions of all stakeholders.