Scenario 14

question 97

Multiple Choice

Scenario 14.2?Use the following to answer the questions.??Lands' End offers clothing and accessories for all members of the typical household. For many years, the products were sold only through catalogs. Later, they were available through the company on its Internet website. In the past few years, Lands' End has partnered with Sears to offer selected Lands' End products inside of Sears retail stores. This move by Lands' End has been criticized by some marketers because it was thought that the Lands' End products were superior in quality to those that are available in Sears stores. Additionally, the products available in Sears stores include Craftsman tools, lawn care equipment, and household appliances, which are not Lands' End types of product lines. This may create mixed messages about Lands' End to prospective customers.
-Refer to Scenario 14.2. When Lands' End sells its products through a catalog or the Internet, it is most likely a(an) ____, selling through ____.

• A)off-price retailer; direct marketing
• B)mass merchandiser; retail outlets
• C)retailer; direct marketing
• D)specialty retailer; retail outlets
• E)category killer; direct marketing

---

Definitions:

Earnings Before Taxes

A measure of a company’s financial performance that calculates profits before taxes are deducted.

Sales Price

The financial value assigned to a product or service available for purchase in the market.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor expenses.

Variable Cost

Expenses incurred by a business that vary directly with the level of production or sales volume, such as cost of goods sold.