om Add Page Insert Table Chart Text Shape Media Comment SHORT ANSWER QUESTIONS 31) Harry and Garry are twin brothers, and they each own appliance stores. Harry lives in Charleston, South Carolina and Garry lives in Gainesville, Florida. Even though they live far apart, they talk often, and trade hints and grievances about the appliance retail business. Lately, they have been discussing the fact that in a tough economy consumers often hold off on the upgrade of an appliance as long as possible, deciding that they will wait to trade up" when economy turns around or the appliance breaks, whichever comes first. The brothers are discussing the wisdom of instituting short-term rebates in order to make their appliances more attractive to consumers, and to increase their rather dismal recent sales figures. Unbeknownst to each other, both Harry and Garry decide to institute a retail-level rebate on a specific high-end stove. The prices of the stove are $800 and $1,000 in Harry's and Garry's store, respectively. Both Harry and Garry's rebate offers will be advertised in the Sunday paper, and will last one week. Neither Harry nor Garry has done the research necessary to discover the Just Noticeable Difference (which, for the target market and that product category in that economic climate, is 20%). Both Harry and Garry decided to offer consumers a $180 rebate on their $800 and $1,000 stove, respectively. Harry sells 40 stoves during the rebate period, which is an increase of about 10 more than he sold the week just prior to the rebate offer. Garry sells 35 stoves during the rebate period, which is about the same number that he sold the week just prior to the rebate offer. Did the fact that he didn't know the accurate Just Noticeable Difference cost Harry any Money (2.5 points)? Yes/No (Circle one). If yes, how much? (Please specify how you get your answer, otherwise no credit will be given.) Did the fact that he didn't know the accurate Just Noticeable Difference cost Garry any Money (2.5 points)? Yes/No (Circle one). If yes, how much? (Please specify how you get your answer, otherwise no credit will be given.) OCT tv om Add Page Insert Table Chart Text Shape Media Comment SHORT ANSWER QUESTIONS 31) Harry and Garry are twin brothers, and they each own appliance stores. Harry lives in Charleston, South Carolina and Garry lives in Gainesville, Florida. Even though they live far apart, they talk often, and trade hints and grievances about the appliance retail business. Lately, they have been discussing the fact that in a tough economy consumers often hold off on the upgrade of an appliance as long as possible, deciding that they will wait to trade up" when economy turns around or the appliance breaks, whichever comes first. The brothers are discussing the wisdom of instituting short-term rebates in order to make their appliances more attractive to consumers, and to increase their rather dismal recent sales figures. Unbeknownst to each other, both Harry and Garry decide to institute a retail-level rebate on a specific high-end stove. The prices of the stove are $800 and $1,000 in Harry's and Garry's store, respectively. Both Harry and Garry's rebate offers will be advertised in the Sunday paper, and will last one week. Neither Harry nor Garry has done the research necessary to discover the Just Noticeable Difference (which, for the target market and that product category in that economic climate, is 20%). Both Harry and Garry decided to offer consumers a $180 rebate on their $800 and $1,000 stove, respectively. Harry sells 40 stoves during the rebate period, which is an increase of about 10 more than he sold the week just prior to the rebate offer. Garry sells 35 stoves during the rebate period, which is about the same number that he sold the week just prior to the rebate offer. Did the fact that he didn't know the accurate Just Noticeable Difference cost Harry any Money (2.5 points)? Yes/No (Circle one). If yes, how much? (Please specify how you get your answer, otherwise no credit will be given.) Did the fact that he didn't know the accurate Just Noticeable Difference cost Garry any Money (2.5 points)? Yes/No (Circle one). If yes, how much? (Please specify how you get your answer, otherwise no credit will be given.) OCT tv