Reynold's is a grocery chain that has always catered to mid-market customers. However, the owner, Mal, has noticed that an influx of new residents are buying mostly the lower-cost and discounted products. To attract customers, Mal decides to make a gradual switch to the discount store format, but to do this, he will have to cut costs wherever possible. Which of the following types of services should Mal avoid in order to lower costs?

Question

Quizplus · Accepted Answer

Full-service options require more employees and therefore more costs, so Mal should avoid this type of service. Additionally, having a limited-selection means fewer products to stock and manage, leading to potential cost savings. However, self-selection and self-service options may not be appropriate for all customers, and completely eliminating services may negatively impact the customer experience.

Reynold's Is a Grocery Chain That Has Always Catered to Mid-Market