Grocery Retailer Safeway Displays the Thousands of Items It Sells

question 6

Multiple Choice

Grocery retailer Safeway displays the thousands of items it sells in aisles containing related items or product groupings.Examples would be the pet food aisle or the soft drink aisle.Why would Safeway display and sell product groupings in this manner?

• A)The groupings increase the number of market-product combinations on the market-product grid,which makes it a more manageable framework for subsequent analysis.
• B)This form of product groupings makes it easier for customers to get in and out of the store more quickly,creating time utility.
• C)The products are grouped so people can relate to them in a more meaningful way when they shop.
• D)Product groupings can be generated quantitatively to show which adhere to the 80/20 rule.
• E)Individual suppliers get preferential treatment based upon the number of different UPCs they provide in a given store.

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Definitions:

Indirect Advertising Costs

Expenses related to advertising that are not directly associated with a specific advertising medium or campaign, such as salaries of marketing staff or overhead costs.

Allocated

The process of apportioning resources, costs, or expenses to specific projects, departments, or cost centers.

Gross Sales

The total sales revenue of a business before any deductions are made for returns, allowances, and discounts.

Building Cost

The total expenses incurred to acquire, construct, or improve a building, including material, labor, and other costs.