Scenario 1-4
At Target, a global discount retailer, sales are around $65 billion a year and rising.In addition, the company employs more than 360,000 people worldwide.Target stores carry just about every major brand imaginable.In addition, Target carries a number of its own brands including Market Pantry, Archer Farms, and Up and Up. Each of the brand labels appears on different products throughout the store-for example, The Archer Farms label appears on the retailer's highest quality foods. The Market Pantry label appears on food items as well, however these items are often sold at a significantly lower price. The Up and Up label is on a large range of products ranging from paper products to household cleaning supplies.
-(Scenario 1-4) In a majority of Target's promotions, the store is marketed as somewhat "upscale," and this is demonstrated through its prices, which are generally higher than its biggest competitor, Walmart. Still, even in times of recession, Target continues to increase its annual revenues and retain many of its customers. This can be attributed to

Question

Quizplus · Accepted Answer

The fact that Target is able to increase its annual revenues even during times of recession suggests that its customers have an inelastic demand for its products, meaning they are willing to pay the higher prices for the perceived value and quality associated with Target. This is likely due to the store's upscale image and its emphasis on carrying high-quality products and its own brands. Economies of scale, GDP, and elasticity of demand are not as relevant to explaining Target's success in this scenario.

Scenario 1-4 At Target, a Global Discount Retailer, Sales Are Around $65