Quiz 14: Retailers, Wholesalers, and Direct Marketers


Wheels of retailing: A wheel of retailing is a theory that explains how retailers should approach to capture market share and create brand value. It describes how retailers normally start at the bottom of the wheel with low price , profits, and prestige and then progressively work their way up to raise prices , prestige, and profit. Example: When a new gym is opened in an area, it offers introductory rates to attract business and to build its client base strong. Once the gym increases the service provided, it increases the joining price along with the service. A competitor will open a new gym in the same area, offering a lower joining price. This will cause the already existing gym to lower its price again to stay competitive and to grow its business.

The following is the differentiation strategy used by G Company: Subscription is very easy on the company's website, whereas other website subscriptions are complicated. The provide new deal every day in all the 45 U.S cities where G Company operates. It offers special deals or deals that people have not tried before such as museum membership, kayaking lessons, and many more. The consumers find it very easy to grab a deal on this website.

The mentioned store is different from its competitors in following ways: • Each A.P Store is different in its outlook and have unique store layout. • The company sells its products through its website , which helps the consumers to shop from their home or office. • The company deals into products from two different industries which include furniture and apparel. • An important factor that makes the company unique is its pricing; it has products ranging from $2 to $10,000, this facilitates attract large number of customers.

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