According to the concept of ________, new retailing forms often begin as low-margin, low-price, low-status operations to challenge established retailers. Such retailers then become successful, and eventually become like the conventional retailers they replaced.
A) ambush marketing
B) flash sales
C) wheel-of-retailing
D) warehousing
E) product life cycle

Question

Quizplus · Accepted Answer

The concept described in the question is known as the wheel-of-retailing. This theory suggests that new retailing forms often begin as low-margin, low-price, low-status operations to challenge established retailers. As these new retailers become successful, they add more services and improve their facilities, eventually becoming like the conventional retailers they replaced. This process continues as new low-status retailers challenge the improved retailers, and the cycle repeats itself.

According to the Concept of ________, New Retailing Forms Often