With a Looming Recession in Front of Him, Department Store

question 510

Multiple Choice

With a looming recession in front of him, department store owner Cooper Collins decided to make a gutsy move with his high-end Eastpointe 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) Eastpointe 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) Eastpointe stores recognized several markets that it could reach with its upscale clothing lines.
• C) Eastpointe positioned itself against, rather than with, the competition. It decided to adhere to its price leadership position.
• D) Eastpointe 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:

Insula

A region of the brain located deep within the lateral sulcus, involved in functions related to emotion and the regulation of the body's homeostasis.

Filiform Papillae

Filiform papillae are small, thread-like structures on the tongue's surface that do not contain taste buds but are important for the texture and sensation of food.

Ethmoid

A spongy, cuboid-shaped bone located at the roof of the nasal cavity and part of the floor of the anterior cranial fossa; crucial for olfaction and nasal support.

Olfactory Perception

The sense of smell, a complex process involving the detection and identification of volatile substances by the olfactory system.