The Ferrante Company Sells Custom Music Mixes to Retail Stores

question 16

Multiple Choice

The Ferrante Company sells custom music mixes to retail stores that need to create a specific mood and increase sales with music.Ferrante's major innovation is the ability to track sales activity by song but also by mix of songs to track what songs led to a purchase.They can also track the movement and activities of customers within the store when customers use shopping carts or baskets equipped with special sensors and associate customer movement and behavior with the songs playing.
Jeff Baliyut,a sales representative with Ferrante,is meeting with the merchandising director of a major retail chain selling mid-market kitchen accessories and specialty foods.
-Which of the following is a survey question Jeff can ask the merchandising manager?

• A)If I understand you,knowing only the song playing when the customer reaches the register doesn't take into account patterns of shopping,purchasing triggers,or waits in a checkout line?
• B)Do you have point-of-purchase software that allows you to track time and amount of purchase?
• C)How does your current music provider track the correlation between songs and purchases?
• D)Does knowing the song playing at the moment the customer gets to the register give you the information you really need to create an effective mix?

---

Definitions:

Invest

To allocate money in the expectation of some benefit in the future, usually through the purchase of assets with the hope that they will increase in value.

Ordinary Annuity

Continuous uniform payouts effected at every period’s cessation over a stipulated time frame.

Compounded Quarterly

A method of calculating interest where the interest earned is added to the principal four times a year, leading to interest on interest.

Payments

The act of transferring money, or its equivalent, from one party to another as a settlement of an obligation, such as bills, invoices, or loans.