Question

Just Candles, a supply house for scented and unscented tapers and other ceremonial candles to houses of worship, restaurants, and other establishments, has experienced a downturn in business in the last two years. Upon investigation, the owner of Just Candles learns that the same candles that they sell are available from online retailers for at least 10% less. The firm will not be able to survive if customers continue purchasing from competing online retailers. Just Candles maintains a storefront for selling candles but does not provide other services or products. 2) Which of the following would most likely enable Just Candles to recapture their previous customers and gain new customers? A) Just Candles could lower their prices on less popular candles to create "loss leaders" that would induce new customers to purchase regularly-priced candles from them. B) Just Candles could shut down their retail location to cut overhead and move their business to the Internet, where they could charge lower prices and compete with other online candle retailers. C) Just Candles could send out a mailing to all their customers reminding them that they carry a full line of candles. D) Just Candles could move their store to a more visible and expensive location in the mall. E) Just Candles could announce a "candle of the month" program to discount candles that traditionally haven't sold as well as their other candles. 3) Which of the following would most likely be a value-added strategy that could boost sales for Just Candles? A) eliminating most candle sizes to focus on only tapers B) visiting commercial customers to give them product brochures C) offering classes for new customers on decorating with candles D) lowering prices on all taper candles to compete with e-retailers E) selling to customers in the local area using a mass marketing campaign

Answer 1

Which of the following would most likely enable Just Candles to recapture their previous customers and gain new customers?

Answer-Just Candles could shut down their retail locations to cut overhead and move their business to the Internet, where they could charge lower prices and compete with other online candle retailers

Reason= Shifting to online marketing will provide greater access to the customers located in different parts of the country and can also reduce the operating cost

Which of the following would most likely be a value-added strategy that could boost sales for Just Candles?

Answer=Offering classes for new customers on decorating with candles

Reason= By providing new products and options, more values can be provided to the customers.

KINDLY RATE THE ANSWER AS THUMBS UP. THANKS A LOT