Clara owns a popular women's boutique in a gentrified urban area.She carries women's career wear and an extensive selection of quality leather handbags.Recently,Clara noticed that her shoppers have high awareness of her apparel,but are surprised when they see the handbags.Since the handbags have high margins,she is concerned about the shoppers' surprised response.What should Clara do?

Question

Quizplus · Accepted Answer

Clara should allocate more of the communication budget to advertise the handbags in special ads. This will increase the shoppers' awareness of the handbags and may lead to an increase in sales. It is important for Clara to maximize the profits from all her products, and since the handbags have high margins, they could be a valuable source of revenue for her business. Doing nothing (option A) is not a good choice since she is already aware of the shoppers' surprised response. Placing the handbags in the back of the store (option B) could lead to even lower visibility and sales. Realizing the passing fad of leather and providing less of an assortment (option D) is not a good idea since it is not clear if leather handbags are indeed a passing fad. Spending equal amounts on each merchandise category (option E) may not be the most effective strategy if certain products have higher margins or higher demand.

Clara Owns a Popular Women's Boutique in a Gentrified Urban