The theory that retailers enter the market with low costs, low margins and low prices, but move to high costs and high prices as they seek to compete with copiers, only to then have to compete with new low-price entrants, is known as:
A) the wheel of retailing.
B) marketing strategy.
C) the product life cycle.
D) market churn.

Question

Quizplus · Accepted Answer

understand the major aspects of retailing. The wheel of retailing is the theory that retailers enter the market with low costs, low margins and low prices, but move to high costs and high prices as they seek to compete with copiers, only to then have to compete with new low-price entrants.

The Theory That Retailers Enter the Market with Low Costs