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Scenario 10-6 Facing Stiff Competition from Walmart and K-Mart, Executives for Target

question 15

Multiple Choice

Scenario 10-6
Facing stiff competition from Walmart and K-mart, executives for Target stores have decided to focus on reaching more affluent shoppers and luring them away from traditional department stores.They have already expanded the products and brands they offer to include reasonably priced items by modern design masters.Target hopes to draw more affluent shoppers into its stores through a series of advertising campaigns that are presently in the planning stages.Most of the advertising budget will be directed to ads in regional luxury magazines, which research shows are frequently read by affluent individuals.
-(Scenario 10-6) Target managers feel that their potential customers, who are now shopping in department stores, must be persuaded to visit Target stores by recognizing the unique image, positive significance, and social meaning for their brand.Several methods might be used, but which of the following would be least effective in accomplishing this objective?

Definitions:

Marginal Tax Rate

The rate at which the next dollar of taxable income will be taxed, indicating the tax bracket into which the last dollar of income falls.

Dividend Payout

The portion of a company's earnings that is distributed to its shareholders as dividends.

Capital Gains

The profit earned from the sale of assets or investments that have increased in value over the time they were held.

Dividend Payout

The part of profits paid out to shareholders as dividends.