The Ferrante Company Sells Custom Music Mixes to Retail Stores

question 32

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 confirmation 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)Would it help you to be able to track songs as customers browse and shop,as well as tracking mixes that lead to the actual purchase,to be able to mix songs for better sales?
• E)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?

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Definitions:

Novation

In a contract, the substitution of a third party for one of the original parties; the duties remain the same under the contract, but one original party is discharged and the third party takes that original party’s place.

Substituted Contract

An agreement between the contracting parties to replace an existing contract with a new one, possibly altering terms or obligations.

Punitive Damages

Financial compensation awarded in a lawsuit intended to punish the defendant for especially harmful behavior and deter future misconduct.

Liquidated Damages

A predetermined sum of money agreed upon by the parties in a contract to be paid as compensation if one party breaches the contract.