Which of the Following Is NOT True About Staple Merchandise

question 22

Multiple Choice

Which of the following is NOT true about staple merchandise categories?

• A)They consist of items which are in continuous demand over an extended time period.
• B)The number of new product introductions in these categories is limited.
• C)The demand for these categories is predictable.
• D)Because their sales are relatively steady from day to day,periodic inventory system is used.
• E)Merchandise planning systems for these categories focus on continuous replenishment.

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Definitions:

Status Quo

The existing state of affairs; in prospect theory, the current situation from which gains and losses are calculated.

Utility

A measure of satisfaction or value that consumers receive from consuming goods and services.

Endowment Effect

The tendency people have to place higher valuations on items they possess (are endowed with) than on identical items that they do not possess; perhaps caused by loss aversion.

Behavioral Economists

Economists who study how psychological, social, cognitive, and emotional factors affect the economic decisions of individuals and institutions.