QUESTION THREE

RSK Trading is a medium sized clothing retailer that sells unique exclusive clothing to a niche market segment. The niche market segment is centered around individuals that want to be seen wearing exclusive branding clothing items. Historically RSK Trading has only issued cash terms to its customers with the option to lay-bye an item provided payment is made within a month. The store has manager has realized after conducting preliminary research that he could increase sales by providing a credit facility to his customers.

With regards to the above scenario, the store manager has approached you as a marketing consultant to construct a brief informing the store manager on consumer behavior.