According to the ________ hypothesis, new retailing forms often begin as low-margin, low-price, low-status operations to challenge established retailers; then become successful; and eventually take the place of the established retailers they had challenged.
A) agent
B) broker
C) wheel-of-retailing
D) warehousing
E) retail life cycle

Question

Quizplus · Accepted Answer

The correct answer is the "wheel-of-retailing" hypothesis, which describes a cycle where new retail formats start with low prices and margins, grow in popularity and status, and eventually replace the established retailers they initially challenged.

According to the ________ Hypothesis, New Retailing Forms Often Begin