Dopson's Hardware Was in Bad Financial Shape

question 33

Multiple Choice

Dopson's Hardware was in bad financial shape.They owed so much money that vendors put the store on a cash-only delivery basis.As a result,the store had a dwindling inventory of goods to sell.Whenever a customer asked about an unavailable item,the owner directed the sales staff to say that it was on back order and would be in stock next week.When the customer returned,the item was still unavailable.The owner's policy created a(n) __________ gap.

• A) knowledge
• B) empowerment
• C) communication
• D) standards
• E) tangibility

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Definitions:

Cost-oriented

A pricing strategy where the price of a product or service is determined based on its production cost plus a markup.

Price Lining

A pricing strategy where a retailer offers a product line at several price points, catering to different customer segments and preferences.

Odd-even Pricing

A pricing strategy that sets prices just below a round number (e.g., $19.99 instead of $20) to make the price seem lower than it actually is.

Customers' Responses

Feedback or reactions of customers to a product, service, or interaction with a business.