Grocery Retailer Safeway Displays the Thousands of Items It Sells

question 94

Multiple Choice

Grocery retailer Safeway displays the thousands of items it sells in aisles containing related items or product groupings.Examples would be the pet food aisle or the soft drink aisle.Why would Safeway display and sell product groupings in this manner?

• A)The groupings increase the number of market-product combinations on the market-product grid,which makes it a more manageable framework for subsequent analysis.
• B)This form of product groupings makes it easier for customers to get in and out of the store more quickly,creating time utility.
• C)The products are grouped so people can relate to them in a more meaningful way when they shop.
• D)Product groupings can be generated quantitatively to show which adhere to the 80/20 rule.
• E)Suppliers get preferential treatment based upon the number of different UPCs they provide.

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Definitions:

Primary Colors

Red, yellow, and blue—the colors from which all other colors may be derived.

Indifference Curves

Graphical representations in economics to show combinations of two goods among which a consumer is indifferent in preference.

Budget Constraints

The limitations on the consumption choices of individuals or households based on their income and the prices of goods and services.

Optimum

The best or most favorable point, level, or condition, especially in terms of efficiency or success.