Question

Contemporary Trends sells paint and paint supplies, carpet, and wallpaper at a single store location in suburban Baltimore. Although the company has been very profitable over the years, management has seen a significant decline in wallpaper sales and earnings. Much of this decline is attributable to the internet and to companies that advertise deeply discounted prices in magazines and offer customer free shipping and a toll-free telephone number. Recent figures follow.

Which of the following is a likely cause of the decline in wallpaper sales?

a) Increased advertising
b) Online discounts
c) In-store promotions
d) Customer service improvements

Answer 1

Online discounts from competitors are the likely cause of declining wallpaper sales for Contemporary Trends, as they appeal to modern consumers' preference for convenience and savings.

Step-by-step explanation:

The likely cause of the decline in wallpaper sales for Contemporary Trends is b) Online discounts offered by competitors. As noted, the internet has had a significant impact on traditional brick-and-mortar businesses. Companies advertising online can reach a broader audience with discounted prices, free shipping, and convenient toll-free ordering. This modern convenience has overshadowed traditional in-store shopping experiences, impacting sales of retail items like wallpaper. With the introduction of online shopping and advertising, consumer habits have shifted considerably since the presence of earlier models like mail-order houses and department stores.