Asked by NIDHI THOMAS on May 17, 2024
Verified
Which of the following supermarket strategies to increase sales would be most consistent with a neoclassical economics (versus behavioral economics) approach?
A) Holding posted prices constant but reducing package sizes.
B) Providing discounts for buying in bulk.
C) Placing the most frequently purchased items at the back of the store.
D) Positioning high-profit kids cereals on the lower shelves of the cereal aisle.
Neoclassical Economics
A method in economics that centers on how the distribution of goods, output, and income in markets is determined by the forces of supply and demand.
Bulk Discounts
Price reductions offered to buyers when they purchase large quantities of goods, used as an incentive for larger orders.
Supermarket Strategies
Marketing and operational tactics used by grocery stores to attract customers, enhance shopping experience, and increase sales.
- Gain an understanding of the elementary theories behind behavioral economics as opposed to neoclassical economics.
- Acquire knowledge of the strategies used by businesses to persuade customer decisions and amplify sales.
Verified Answer
Learning Objectives
- Gain an understanding of the elementary theories behind behavioral economics as opposed to neoclassical economics.
- Acquire knowledge of the strategies used by businesses to persuade customer decisions and amplify sales.
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