Which of the Following Has the Least Consideration When a Retailer

question 65

Multiple Choice

Which of the following has the least consideration when a retailer is deciding how much floor or shelf space to allocate to merchandise categories and brands?

• A) The productivity of the allocated space
• B) The impact on overall store sales
• C) The display needs for the merchandise
• D) The merchandise's inventory turnover
• E) The color of the merchandise

---

Definitions:

Marginal Utility

The increased contentment or advantage obtained by the consumption of an extra unit of a good or service.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing the benefit to consumers from participating in the market.

Utility

Utility refers to the total satisfaction received from consuming a good or service.

Diminishing Utility

The principle that as consumption of a good or service increases, the marginal utility derived from each additional unit decreases.