Reynold's is a supermarket 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 products and products on discount.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 service should Mal avoid in order to lower costs?

Question

Quizplus · Accepted Answer

Full-service requires more employees to help customers with their purchases, which increases labor costs. Switching to limited-service or self-service would help Mal lower costs. Limited-selection could also be helpful as it limits the number of products offered, reducing inventory and storage costs.

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