EasyMart (EM)has a Physical Store and an Online Shopping Site

question 30

Multiple Choice

EasyMart (EM) has a physical store and an online shopping site and is coming up with deals on retail products for the week of Christmas.As a marketing consultant at EM,which of the following tactics would you recommend to achieve the highest sales?

• A) Issue discount coupons in newspapers for all products
• B) Issue in-store coupons for select products and brands
• C) Issue digital coupons for discounts on all products
• D) Issue discount cards redeemable on future purchases

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Definitions:

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the sensitivity of consumers to price changes.

Inelastic Demand

This economic concept describes a situation where the demand for a product does not significantly change with the price change.

Contribution Margin

A financial metric that represents the amount of revenue from sales that exceeds variable costs, used to cover fixed expenses and generate profit.

Unit Variable Cost

The cost associated with producing one additional unit of product, which includes labor, materials, and other variable expenses.