Retailers Can Reduce Showrooming by

question 3

Multiple Choice

Retailers can reduce showrooming by

• A) designing programs to sell merchandise to other distributors rather than end-users.
• B) using a single channel to promote products.
• C) offering limited assortments on their websites.
• D) promoting private-label merchandise that can be purchased only from the retailer.
• E) recruiting people to become distributors in their network.

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Definitions:

Weighted Cost

Refers to the cost of capital that is calculated by taking the weighted average of the costs of all sources of capital, including debt and equity.

Financing

The act of providing funds for business activities, making purchases, or investing.

Capital

Long-term assets or the money used to support long-term assets and projects. Long-term debt and equity on the balance sheet.

Profitability Index

A capital budgeting tool that measures the relationship between the present value of cash inflows and the initial investment, indicating the relative profitability of a project.