Why does it make sense to sell high-priced and exclusive merchandise such as diamonds,rare Cognac,or Waterford Crystal,through warehouse club channels?
A) The warehouse clubs attract thousands of customers each year.
B) Companies can sell last year's style/model easily at the warehouse club.
C) Two-thirds of the shoppers at a warehouse club are business owners, many of whom are successful and affluent.
D) These types of manufacturers are changing their distribution channels to include mass merchandisers, discount stores, and warehouse clubs in order to reach more potential buyers.
E) It makes no sense for these manufacturers to sell products at a warehouse club and diminish the image of their brand or product name.

Question

Quizplus · Accepted Answer

The fact that many business owners who are successful and affluent shop at warehouse clubs makes it a logical choice to sell high-priced and exclusive merchandise like diamonds, rare Cognac, or Waterford Crystal through this channel. These customers may be willing to make larger purchases and have the means to do so.

Why Does It Make Sense to Sell High-Priced and Exclusive