Clyde Wants to Open a New Store in His Neighborhood

question 35

Multiple Choice

Clyde wants to open a new store in his neighborhood but needs to first collect relevant data.A cost-effective way to start his research is by:

• A)relying exclusively on primary data collection because it can be customized to ensure relevance.
• B)collecting secondary data to narrow the list of possible locations, then use the results to focus primary research efforts on a limited number of possible locations.
• C)relying solely on secondary data, even if it is insufficient. This allows the firm to free up both time and financial resources for the design and development of the actual store.
• D)collecting primary data. Then, once the primary data is collected, use secondary sources to refine and verify the results.

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Definitions:

Operating Divisions

Sections or branches within a company that focus on distinct lines of business or market areas, responsible for their own revenues, expenses, and operations.

Variable Costs

Variable costs are expenses that vary directly with the level of production output, such as materials and labor costs.

Fixed Costs

Charges that stay the same no matter the amount of goods produced or sold, such as rent, salaries, and insurance.

Peak-period Demand

The highest level of demand for a product or service within a specific time frame, often requiring additional resources.