Consider Figure 8-4: Question 8 Above,which Was Part of a Wendy's

question 200

Multiple Choice

Consider Figure 8-4: Question 8 above,which was part of a Wendy's survey that assessed fast-food restaurant preferences among present and prospective consumers.Which of the following statements MOST LIKELY explains why Question 8 was included in the questionnaire?

• A)Wendy's wanted to know how often people eat at Wendy's and its competitors.
• B)Wendy's wanted to know why people were eating at its competitors.
• C)Wendy's wanted to know who eats at In 'N Out Burger.
• D)Wendy's wanted to estimate how many customers they could woo away from McDonald's.
• E)Wendy's wanted to find out if there was a relationship between coupons and customer loyalty.

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Definitions:

Switch Break-Even Point

The analysis used to determine the point at which the cost of switching to a different product, service, or system is recouped through subsequent cost savings or benefits.

Variable Cost

Costs that vary directly with the level of production or volume of goods and services provided.

Monthly Interest Rate

The percentage of interest that is charged or earned on a loan, deposit, or investment over a month's period.

Cash Only Credit Policy

A credit policy where a company does not extend credit and only accepts cash payments.