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Just Candles,a Supply House for Scented and Unscented Tapers and Other

Question 5

Multiple Choice

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 has discovered that the same candles that they sell are available to their customers at a 10% lower price when ordered through the internet.As Just Candles is a supply house that does not provide other services or products but still has to maintain a storefront,they will not be able to survive if the current trend of their customers toward the internet continues.
-Which of the following could Just Candles do to best 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 internet 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 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.

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