Through the Years,drugstores Have Added More Unrelated Products to Their

question 113

Multiple Choice

Through the years,drugstores have added more unrelated products to their product mix,such as lawn care supplies,food items,housewares,and small appliances.This illustrates which of the following retail strategy issues?

• A) Tumbled product assortment
• B) Product line combination
• C) Scrambled merchandising
• D) Wheel of retailing
• E) Direct marketing

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Definitions:

Entry Barriers

Obstacles that prevent or hinder new competitors from easily entering an industry or market.

Inverted-U Theory

A hypothesis suggesting that a variable can produce effects that increase to a point after which further increases in the variable lead to a decline in the effect.

Industry Concentration Ratios

Statistical measures that express the extent to which a small number of firms dominate the total output, sales, or capacity in an industry.

R&D

Research and Development; a dedicated business or policy activity aimed at investing in new knowledge, product development, and innovation improvement.