What Do Retailers Need to Do to Develop a Strong

question 86

Multiple Choice

What do retailers need to do to develop a strong set of associations and a clearly defined brand image?

• A) Keep their prices low
• B) Offer the services the customer wants
• C) Focus on specifics of the retail mix that directly affect the way the customer shops
• D) Be consistent by portraying the same message to the customer over time and across all elements of the retail mix
• E) Integrate the elements of the retail mix and fine tune which element creates the largest margins

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Definitions:

Retained Earnings

The portion of a company's profit that is held or retained and saved for future use, investment, or to pay debt, rather than being distributed to shareholders as dividends.

After-tax Earnings

The net income a company generates after all taxes have been deducted from total revenue.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity which is used to finance its overall operations and growth.

Residual Dividend Policy

A strategy where dividends are paid after all project capital needs and working capital requirements are met.