A Supermarket Assigns Shelf Space on the Basis of Sales

question 24

Multiple Choice

A supermarket assigns shelf space on the basis of sales volume.For example,a brand with twice the sales volume will be assigned twice the shelf facings of the slower-selling brand.This retailer determines space needs by ________.

• A) the sales-productivity ratio
• B) the model stock approach
• C) market segment product groupings
• D) the law of diminishing returns

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Definitions:

Anchoring with Adjustment

A cognitive bias where initial information serves as an anchor and subsequent decisions are adjusted around this anchor, though often not enough.

Expression

The process of making known one's thoughts or feelings through words, gestures, or artistic mediums.

Influence

The capacity or power of individuals or things to be a compelling force on the actions, behavior, opinions, or development of others.

Loss and Risk Aversion Heuristic

A cognitive bias where people prefer to avoid losses rather than acquiring equivalent gains, indicating a greater sensitivity to losses over gains.