The mass merchandising formula is very much driven by low gross margins which means the retailer must keep its cost low resulting in:

Question

Quizplus · Accepted Answer

In order to maintain low prices and achieve low gross margins, mass merchandisers often cut costs in areas such as customer service. This can result in lower levels of customer service, which may negatively impact customer satisfaction. However, the low prices may attract higher levels of customer traffic, which can be beneficial for the retailer.

The Mass Merchandising Formula Is Very Much Driven by Low