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You Are a Consumer in Need of a New Can

question 97

Essay

You are a consumer in need of a new can opener.You see a manual operated can opener in a discount store that costs $5.99.You see the same style can opener in a fancy package and in a range of colours in a trendy gadget store in the mall for $15.99.Which can opener would you purchase if you applied the heuristic rule that price equals quality?


Definitions:

Cash-to-Cash Cycle

The time period between when a business pays cash to its suppliers for inventory and receives cash from its customers for goods or services sold.

Responsiveness

The ability of an organization or system to quickly and effectively adapt to changes or respond to customers.

ROA

Return on Assets, a financial metric indicating how profitable a company is relative to its total assets, measuring efficiency in using assets to generate earnings.

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