Regarding Markups and Turnover

question 192

Multiple Choice

Regarding markups and turnover:

• A) supermarket operators have found that high-margin products are generally more profitable than low-margin products.
• B) higher markups always lead to higher profits.
• C) low stockturn rates increase costs by tying up working capital in inventory.
• D) to earn higher profits, all firms should lower their markups and seek faster turnover.
• E) None of these alternatives is correct.

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Definitions:

Brand Equity

The value and strength of a brand that determines its worth, influenced by consumer perception, recognition, and loyalty.

New Products

Goods or services that have been recently developed and introduced to the market by a firm.

Brand Loyalty

The tendency of consumers to continuously purchase one brand’s products over its competitors, often due to satisfaction, trust, or preference.

Marketing Costs

The total expenses associated with promoting a product, service, or brand, including advertising, promotions, and sales personnel expenses.