The wheel of retailing explains the emergence of new retailing forms by ----.
A)retailers cycle through peaks of high cost price and troughs of low cost price.
B)whole sellers see retailing opportunity, enter retailing, then turn to wholesaling again.
C)new retailers emerge, grow, mature and decline.
D)low margin, low price retailers enter to compete with retailers who are high margin and high price.

Question

Quizplus · Accepted Answer

The wheel of retailing theory suggests that new types of retailers usually enter the market as low-margin, low-price operations challenging established higher-margin, higher-price stores. Over time, these new entrants may increase their prices and margins as they add services or improve their facilities, thus beginning the cycle anew.

The Wheel of Retailing Explains the Emergence of New Retailing