Chandler Kumar Owns Two Antique Stores

question 102

Multiple Choice

Chandler Kumar owns two antique stores.One is in an upscale neighborhood,and its merchandise is artfully arranged and priced to indicate product rarity.The other is in a run-down strip mall and contains some of the same type of merchandise,but the items are left in open boxes and placed haphazardly on shelves.Customers of either store have entirely different perceptions of the stores and would be surprised to know Kumar operates each of them because he uses such differing _____ strategies.

• A) market integration
• B) segmentation
• C) targeting
• D) positioning
• E) market combination

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Definitions:

Variable Manufacturing Costs

Costs that change in proportion to the level of production output, such as raw materials and direct labor costs.

Absorption Costing

An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overheads - in the cost of a product.

Product Costs

Costs that are involved in acquiring or manufacturing a product, typically including direct materials, direct labor, and manufacturing overhead.

Net Operating Income

The profit generated from a company's normal core business operations, excluding deductions of interest and taxes.