Which Form of Lease/ownership Arrangement Has the Greatest Flexibility from the Perspective

question 105

Multiple Choice

Which form of lease/ownership arrangement has the greatest flexibility from the perspective of the retailer?

• A) a 15-year lease
• B) purchase of the property with 10 percent down; a mortgage loan is taken out for the balance
• C) a sale-leaseback for 15 years
• D) a short-term lease (5 years) with two renewal option periods of 5 years each

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Definitions:

Low-involvement Decision Making

A consumer behavior characterized by limited research and consideration because the product is perceived as low risk.

Consumer Purchase Decision Process

Describes the stages a consumer goes through before, during, and after making a purchase, including problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.

Extended Problem Solving

A consumer decision-making process used for high-involvement purchase decisions, involving extensive information search and evaluation of alternatives.

Liberal Return Policy

A customer-friendly return policy that allows customers to return purchased items with minimal restrictions, often aimed at enhancing customer satisfaction and loyalty.