Loss leaders,weekly promotions,an excellent location,and special events (such as cooking classes)are more common in retailing than in wholesaling because ________.
A) profit margins in retailing are higher than in wholesaling
B) retailing is the final stage in the channel of distribution
C) most retail customers must be drawn to a store location
D) the average sale in retailing is smaller than in wholesaling

Question

Quizplus · Accepted Answer

Retail customers typically need to physically visit a store location, meaning that retailers typically need to invest more in drawing customers to their stores through tactics such as loss leaders, weekly promotions, and special events. Wholesalers, on the other hand, primarily sell to other businesses rather than individual consumers, so they typically do not need to invest as heavily in these types of tactics. Profit margins, the final stage in the distribution channel, and average sale size are not the primary factors driving the difference in tactics between retailing and wholesaling.

Loss Leaders,weekly Promotions,an Excellent Location,and Special Events (Such as Cooking