6. [6%] The Food Institute reports that, "Whole Foods is planning a nationwide launch for its loyalty program in 2017. The company will work to integrate more digital coupons in the program..." a. What does Whole Foods aim to accomplish by via digital coupons? b. How can Whole Foods enhance the power of digital coupons by linking them to its loyalty program? 7. [6%] In October 2015, Walgreens announced a plan to acquire Rite Aid. Both companies are major retail pharmacy chains that sell food products. The proposed acquisition must be approved by the Federal Trade Commission (FTC). a. What are two ways that Walgreens could aim to increase its profits by acquiring Rite Aid? b. What is the economic justification for a government agency like the FTC to regulate business mergers and acquisitions?
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Many grocery store chains offer customers a card they can scan when they check out and offer discounts to people who do so. To get the card, customers must provide their mailing address and email address. The actual purpose is not to reward loyal customers but to gather data. What data do these cards allow stores to gather? What data do these cards allow stores to gather? Select all that apply: A. Amount of money a customer spends at the grocery store B. Time a customer spends at the grocery store C. Identities of other stores at which a customer shops D. Items a customer purchases at the grocery store E. The geographical location of a customer's home F. Frequency with which a customer makes purchases at the grocery store What are some reasons why grocery store chains might want this data? Select all that apply: A. To help determine the most profitable locations for new grocery stores B. To analyze the effects of price changes on individual shoppers' purchases C. To find evidence of particular customers shoplifting D. To determine how best to market and advertise to different customers
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In the United States, the Federal Trade Commission (FTC) is charged with promoting competition and challenging mergers that would likely lead to higher prices. Several years ago, Staples and Office Depot, two of the largest office supply superstores, announced their agreement to merge. a. Some critics of the merger argued that, in many parts of the country, a merger between the two companies would create a monopoly in the office supply superstore market. Based on the FTC's argument and its mission to challenge mergers that would likely lead to higher prices, do you think it allowed the merger? b. Staples and Office Depot argued that, while in some parts of the country they might create a monopoly in the office supply superstore market, the FTC should consider the larger market for all office supplies, which includes many smaller stores that sell office supplies (such as grocery stores and other retailers). In that market, Staples and Office Depot would face competition from many other, smaller stores. If the market for all office supplies is the relevant market that the FTC should consider, would it make the FTC more or less likely to allow the merger?
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