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 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 usually involves a higher level of staffing, which can increase costs. Therefore, in order to lower costs for the transition to a discount store format, Mal should avoid full-service.

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