Scenario 1-4
Target, a global discount retailer, generates around 65 billion dollars in sales annually. Additionally, the company employs more than 360,000 people worldwide. Target stores carry just about every major brand imaginable. Target also 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 "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

Scenario 1-4
Target, a global discount retailer, generates around 65 billion dollars in sales annually. Additionally, the company employs more than 360,000 people worldwide. Target stores carry just about every major brand imaginable. Target also 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 "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:

Quizplus · Accepted Answer

The fact that Target's prices are generally higher than Walmart's suggests that the demand for Target's products is relatively inelastic, meaning that customers are willing to pay the higher price for perceived higher quality. This is likely a key reason why Target is able to increase its annual revenues and retain customers even during times of recession. Brand equity (A) refers to the value that a brand name adds to a product, and while Target does have its own labels, it also carries many major brands. Gross domestic product (C) is a measure of a country's overall economic output, and it is not clear how an increase in GDP would directly impact Target's sales. Elastic demand (D) refers to a situation where a change in price results in a relatively larger change in quantity demanded, which would not necessarily explain why Target is able to retain customers despite its higher prices.

Scenario 1-4 Target, a Global Discount Retailer, Generates Around 65 Billion Dollars