What is a limitation of the rule-based approach to taking markdowns?
A)The rule-based approach is based upon gross margin.
B)The approach prohibits input from the vendor.
C)The approach does not follow a fixed schedule.
D)It does not consider the demand for merchandise at different prices and thus produces less-than-optimal profits.
E)The approach assumes that items in a category do not exhibit the same behavior.

Question

Quizplus · Accepted Answer

Only using a rule-based approach does not consider all the many different factors that generate sales of the merchandise including where and how the merchandise is being displayed,different price points,weather,customer traffic,etc.

What Is a Limitation of the Rule-Based Approach to Taking