Refer to the Scenario Below to Answer the Following Question(s)

question 154

Multiple Choice

Refer to the scenario below to answer the following question(s) .
The Attic Trunk opened in 1999 as an upscale dress shop in Forest Ridge's fashionable shopping district, catering to a wealthy, mature clientele consisting mostly of older, first-generation Hispanics. Many other specialty shops lined the main avenue over the next few years. But as Forest Ridge began to attract a more price-conscious, younger, and more demographically diverse population, the once-popular shopping district was increasingly perceived as stodgy and snobby by the new segment of customers.
By the mid-2000s, 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 so on, often laughing at the ridiculously high prices.
Owners of The Attic Trunk had noticed the shifts in buying behavior of customers by the mid-2000s. In fact, the owners had observed that the once-fashionable shopping district in Forest Ridge no longer attracted the wealthy, mature clientele. This clientele had been replaced with price-conscious 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, fashion accessories, and jewelry. Other owners followed suit in the late 2000s, bringing restaurants, an outdoor cafe, and a day spa to the main avenue in Forest Ridge.
-Which of the following best supports the idea that The Attic Trunk's mature, wealthy clientele can remain a viable target market?

• A) Older, first generation Hispanic consumers are not especially family-oriented.
• B) Older, first-generation Hispanic consumers favor sellers who show special interest in them.
• C) Older, first generation Hispanic consumers tend to be very price conscious.
• D) Older, first generation Hispanic consumers tend to display little brand loyalty.
• E) Older, first generation Hispanic consumers are motivated by mainstream marketing.

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Definitions:

Effective Rate of Interest

The actual cost of borrowing or the actual return on savings, taking into account the effect of compounding interest.

Straight-Line Amortization

A method of allocating the cost of an intangible asset over its useful life in equal installments.

Cash Paid Out

Money that is spent or disbursed by a business, often related to operating expenses, purchasing assets, or repaying liabilities.

Current Calendar Year

The period from January 1 to December 31 of the present year, used for financial and administrative purposes.