Which of the Following Statements About Warehouse Clubs Is TRUE

question 10

Multiple Choice

Which of the following statements about warehouse clubs is TRUE?

• A)Warehouse clubs only sell to ultimate consumers.
• B)Warehouse clubs have a category specialist format.
• C)Warehouse clubs typically have low inventory holding costs.
• D)Warehouse clubs have extensive merchandise depth.

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Definitions:

Discontinuous Innovation

A breakthrough product or service that creates a completely new market or drastically changes both the existing market and consumer habits.

Market Modification

The process of changing a market’s dynamics, including product offerings, pricing strategies, and customer engagement to achieve better performance or competitive advantage.

Product Repositioning

The strategic process of changing a product's place in the market by altering its image, target audience, or distinct features.

Trialability

A characteristic of a product or service that allows potential consumers to experiment with it on a limited basis before making a purchase decision.