Refer to the Scenario Below to Answer the Following Questions

question 81

Multiple Choice

Refer to the scenario below to answer the following questions.
The Attic Trunk began in 1979 as an upscale dress shop in Forest Ridge's fashionable shopping district, catering to a wealthy, mature clientele. Many other specialty shops lined the main avenue over the next few years. But as Forest Ridge began to attract an affluent, younger, and more demographically diverse population, the once-popular shopping district was increasingly perceived as stodgy and snobby. By the late 1980s, many of these specialty shops suffered financially. Most shops attracted only tourists who enjoyed browsing through the displays of alligator belts and shoes, piles of scented soaps, and useless flowered parasols, often laughing at the ridiculously high prices. Owners of The Attic Trunk had noticed the shifts in population and buying behavior of the typical shopper by the late 1980s. In fact, the owners had observed that the once-fashionable shopping district in Forest Ridge no longer attracted a "typical shopper." The wealthy, mature clientele had been partially replaced with affluent families with children, a mix of Asian and African Americans as well as Caucasians. Specialty items at The Attic Trunk gradually disappeared, replaced by brand-name apparel, colognes, and jewelry. Other owners followed suit in the early 1990s, bringing restaurants, an outdoor cafe, and a day spa to the main avenue in Forest Ridge.
-Which of the following is the strongest reason that the owners of The Attic Trunk might NOT want to completely discount the mature consumers as a still-viable target market?

• A) Mature consumers wield considerable influence over purchases made by their children and grandchildren.
• B) Mature consumers are the fastest-growing and wealthiest demographic segment in the United States.
• C) Mature consumers are spending an increasing percentage of their income on specialty items such as those originally sold by The Attic Trunk.
• D) Mature consumers are interested in shopping where younger families shop in an effort to look as young as they feel.
• E) Mature consumers are less willing to shop around and change brands than younger consumers are, so they will likely remain loyal to The Attic Trunk.

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Definitions:

Prestige Products

Goods that are considered luxury items and signify a status symbol to consumers.

Higher Prices

Charging more for goods or services, often due to increased demand, higher costs of production, or added value.

Substitute Products

Products for which changes in demand are negatively related; that is, a percentage increase in the quantity demanded for product A results in a percentage decrease in the quantity demanded for product B.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, often influencing pricing strategies.