Author Question: Fernand's Fabrics has a large inventory of fabric for home crafters and seamstresses but carries ... (Read 12 times)

Caiter2013 · **on:** Jul 14, 2018

Fernand's Fabrics has a large inventory of fabric for home crafters and seamstresses but carries very few craft supplies and is finding it difficult to compete with the large chain fabric stores as a result. In order to bring more customers into the store, Fernand lowers the price of fabric below his cost for a month, hoping that once customers come to his store, they will return. This is called ___ pricing.
A) survival
B) competitive
C) profit maximization
D) investment

Question 2

Explain how the production of services is different from the production of manufactured goods.

durant1234 · **Reply #1 on:** Jul 14, 2018

Answer to Question 1

A

Answer to Question 2

Customers are more involved in obtaining the services they want when compared to manufactured products. Services are consumed immediately unlike products. Most often, services are provided when and where customers desire them; products are not. Services are usually labor-intensive. Services are intangible and, therefore, it is more difficult to evaluate customer satisfaction.