RC_ Models Company sells its products— plastic models (aircraft, ships, and cars
ID: 2593626 • Letter: R
Question
RC_ Models Company sells its products— plastic models (aircraft, ships, and cars) and “add- on” decals for those models— through its Internet Web site, www. Rc_models. com. Models and decals are available in scales that vary from 1/ 144 to 1/ 32. Customers use the Web site to select the products and to pay by credit card. If a product is not currently available, it is placed on back order at the customer’s discretion. (Back orders are not charged to a customer until the order is shipped.) When a customer completes a transaction, the invoice is printed and the products listed on the invoice are pulled from inventory for shipment. (The invoice includes a shipping charge.) The printed invoice is enclosed in the shipping container. The customer credit card charges are transmitted to the CC Bank, at which RC_ Models Company maintains a commercial account. (Note: The CC Bank is not part of the RC_ Models database.) RC_ Models Company tracks customer purchases and periodically sends out promotional materials. Because
Explanation / Answer
Rc models company tracks customer purchases and periodically sends out promotional materials because it is companies policy to charge the customer only on delivery of the product and not on lacing orders , therefore it trackes cutomer purchases to make available the requirements as early as possible and collect payment for the same .It sends promotional material to keep the customers engaged in getting knowledge about new products and lucrative offers provided by the company so as to encourage customers to order more by the time company makes available the request of the customers from its stocks inventory.
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