The Channel Evolution Theory Helps Explain the Evolution of Retailers

question 34

True/False

The channel evolution theory helps explain the evolution of retailers that enter a market and initially attempt to attract customers by offering lower prices. It suggests that eventually low profit margins will force such firms to evolve into more upscale markets, leaving their original customer base behind.

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Definitions:

Following Series

A sequence of numbers or items arranged according to a specific rule or pattern, with each element derived based on the preceding ones.

Miles Per Gallon

A measure of fuel economy that represents the number of miles a vehicle can travel on one gallon of fuel.

Gallons

A unit of volume in the US customary and imperial systems, used to measure liquids. One US gallon is equal to approximately 3.785 liters.

Regular Employees

Individuals who are employed by a company on a permanent basis, typically working a standard work week.