A Local Retailer Calls Its Customers When It Receives Merchandise

question 139

Multiple Choice

A local retailer calls its customers when it receives merchandise that they may be interested in, provides individual service to each customer, provides forms and phone numbers for complaints and comments, and has a 100 percent satisfaction guarantee. Which objective is this business working hard to accomplish?

• A) Making a profit
• B) Achieving low employee turnover
• C) Satisfying the needs of its customers
• D) Increasing the owner's wealth
• E) Keeping up with the current technology

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Definitions:

Substitution Effect

The change in the consumption of goods that results from a change in their relative prices, holding the consumer's level of utility constant.

Income

Compensation acquired from job employment or the act of investing, usually in a regular pattern.

Price

The expected financial outlay, required, or dispensed in payment for something.

Claret

A red wine from Bordeaux, France, or a wine of similar character from elsewhere.