Scenario
Second Avenue, a small retailer of quality second-hand children's clothing, thrives on the sale of a vast inventory of children's clothing placed there on consignment.Its clientele are the result of word-of-mouth communication.The small retailer of quality second-hand children's clothing has never advertised.
Small children grow so quickly," Second Avenue's owner commented."Most of the clothes we carry have hardly been worn! We're extremely picky about the condition of the clothing we stock, but we sell most items at a 60 percent discount."
ecause of this, many of Second Avenue's consigners are also customers.Second Avenue provides a way for people to sell their children's clothing, earn a few dollars, and buy the next larger size.According to the owner, "This keeps customers coming back."
Though Second Avenue has thrived merely through word of mouth, how could the business benefit from advertising?