What Can Department Stores Do to Differentiate Their Merchandise Offering

question 43

Multiple Choice

What can department stores do to differentiate their merchandise offering and strengthen their image?

• A) Increase their pricing
• B) Decrease the variety and assortment of merchandise within the store
• C) Seek exclusive arrangements with nationally recognized brands
• D) Merge with faltering retailers to gain their market share
• E) Start selling both soft goods and hard goods

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Definitions:

Crowding Out

A situation in economics where increased government spending reduces private sector investment or spending due to higher interest rates.

Opportunity Cost

The financial impact of bypassing the next most favorable choice in a decision.

Transfer Payments

These are payments made by the government to individuals or other entities without the government receiving any goods or services in return, such as welfare checks.

Government Budget Deficit

A situation where the government's expenditures exceed its revenues over a specified period of time, leading to borrowing or debt accumulation.