Best Buy sets its prices below other electronics stores in its service area and generally attracts more customers than the others. Best Buy apparently hopes to earn a profit by
A) achieving status quo pricing objectives.
B) setting prices based on "value in use."
C) relying on a high margin percent.
D) setting prices based on a cost-oriented approach.
E) achieving a high stockturn rate.

Question

Quizplus · Accepted Answer

Best Buy's strategy of setting lower prices to attract more customers suggests it aims to sell a higher volume of products. This approach is consistent with achieving a high stockturn rate, where the focus is on moving inventory quickly rather than making a large profit on each item sold.

Best Buy Sets Its Prices Below Other Electronics Stores in Its