Your Local Discount Store Offers Customers Three Options for Printing

question 70

Multiple Choice

Your local discount store offers customers three options for printing their photos: a self-printing kiosk, one-hour photos, and next-day prints. What is the most likely reason this type of firm bothers to offer so many different options to its bargain-hunting consumers?

• A) because offering alternatives to customers leads to greater consumer satisfaction
• B) because some photos take longer to print than others, which allows firms to lower costs
• C) because the variance in impatience on the part of the consumer allows the firm to maximize profit
• D) because the different alternatives help consumers realize which service offers the best price
• E) because the competing stores also offer these same options, so it allows the discount store to remain competitive

---

Definitions:

Annual Cost Savings

The reduction in costs achieved during a fiscal year, often as a result of process improvements or cost-cutting measures.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows, used in capital budgeting to assess the profitability of an investment or project.

Present Investment

Present investment refers to the current amount of money allocated for particular assets or projects, focusing on capital allocation and potential returns.

Total Cost Approach

The total cost approach is an assessment method that considers all possible costs related to a product or project, including direct, indirect, fixed, and variable costs.