Use the Following Information to Answer the Following Question That

question 110

Multiple Choice

Use the following information to answer the following question that refer to the Sure Foot case. Sure Foot, Ltd. produces high-quality shoes and boots for serious hikers.
Sure Foot's shoes have suggested retail prices ranging from just under $40 to about $150. Usually, the retailer buys the shoes for about 50 percent less than the list price, and the retailer pays the freight charges from Sure Foot's plant in Maine. Sure Foot's credit terms are 2/10, net 30. Although Sure Foot's brand appears on every shoe-the firm does very little mass selling, except for a limited program of cooperative advertising and some sales promotion at walking events.
Sure Foot's shoes are carried by "better" sporting goods stores all across the nation-although usually in fairly small quantities. Its main showroom is in Boston, where two salaried salespeople handle most of the firm's large accounts. Sure Foot's products are also sold by seven independent "field reps" who are paid a 5 percent commission on all sales. Each of these field reps is responsible for a several state territory-emphasizing mostly the small stores in or near major cities. The field reps carry Sure Foot's products as a minor line-but none of their lines are competitive with each other.
The walking shoe market is supplied by 7 large firms and 50 or more smaller firms. While these firms are competitive, they do vary their materials, styles, prices, and promotion. The "high-quality" market is supplied by only 5 firms-Sure Foot being the largest. While these firms are also competitive, they generally offer a more limited assortment of materials, styles, and prices because the "high-quality" part of the market is not as large-and does not appear to be growing any more.
How are Sure Foot's shoes seen by most of its target market?

• A) Impulse products
• B) Staple products
• C) Heterogeneous shopping products
• D) Homogeneous shopping products
• E) Specialty products

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Definitions:

Eligibility Requirements

Criteria that determine whether an individual or entity is allowed or qualified to participate in a particular event, activity, or system.

Power Structure

The organization of power and authority within a society, group, or organization, determining how decisions are made and who makes them.

Communication Structure

The organized pattern or arrangement by which information is transmitted and received among members of a system or network.

Group Cohesiveness

The degree to which members of a group are attracted to each other and motivated to stay in the group, affecting the group's performance and stability.