Timing Is an Important Element of Markdowns

question 106

Multiple Choice

Timing is an important element of markdowns.Those retailers who take a markdown as soon as sales fall off are most likely doing so to _________.Those who delay markdowns are most likely doing so to _________.

• A)placate dissatisfied customers; increase demand for complementary products.
• B)enhance customer perceptions of product quality; create a sense of urgency amongst repeat buyers.
• C)create an image as a "cutting edge" retailer; wait for a more active buying cycle.
• D)free up valuable selling space and cash; discourage bargain hunters and maintain an image of quality.
• E)react to the entry of a new competitor; avoid displeasing customers who bought the same items at full price.

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Definitions:

Risky Real Estate Loans

Loans given for real estate purchases that carry a higher risk of default, often due to the borrower's credit status or the nature of the property.

Taxpayers

Individuals or entities that are required to pay taxes to a government body, typically based on income, property value, or consumption.

Commercial Banks

Financial institutions that offer a wide range of services such as accepting deposits, providing loans, and other banking services to the public.

Welfare Banks

Financial institutions or programs that aim to support the economically disadvantaged segments of society, though it's not a widely used term and may refer to various initiatives in different contexts.