Super King Groceries competes with some of the larger grocery stores in the area and offers services not provided by its competitors such as car service and delivery service. Super King is unable to utilize economies of scale as efficiently as other retailers and has moderately higher prices. This does not seem to hurt the store's business. The most likely reason for this is:
A) Super King is a premium brand.
B) Super King provides grocery items that are not available in other stores.
C) Super King's employees are friendlier.
D) Super King's customers receive value that is not provided by other stores.

Question

Quizplus · Accepted Answer

Super King's ability to provide unique services such as car service and delivery service gives their customers added value that they cannot receive from their competitors. Higher prices are offset by these added benefits, which customers are willing to pay for.

Super King Groceries Competes with Some of the Larger Grocery