A Retailer Wants to Increase the Number of Customers Shopping

question 80

Multiple Choice

A retailer wants to increase the number of customers shopping in her store. Which of the following has the greatest potential for success?

• A) Promotional pricing
• B) Price flexibility
• C) Prestige pricing
• D) Unit pricing

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Definitions:

Physical Inventory

The process of counting and verifying all physical goods and materials in stock by a business.

Shipping Costs

The expenses involved in transporting goods from one location to another, including freight charges, packaging, and handling fees.

Diseconomies of Scale

An economic concept where an increase in production leads to a rise in average costs per unit due to inefficiencies.

Economies of Scale

Cost advantages that a business can achieve by increasing the scale of production, leading to lower average costs per unit due to spread fixed costs and operational efficiencies.