According to the wheel of retailing, innovative low-margin, low-cost, and low-price operations seek to broaden their customer base by adding services and upgrading facilities, which results in
A) reduction of operating costs
B) losing initial customers who move on to new low-priced retailers
C) losing initial customers who upgrade to specialty stores
D) gaining a new and broader customer base

Question

Quizplus · Accepted Answer

As retailers upgrade their services and facilities, they often increase prices, which can lead to losing their initial price-sensitive customers who then seek out new low-priced retailers.

According to the Wheel of Retailing, Innovative Low-Margin, Low-Cost, and Low-Price