The channel evolution theory helps explain the evolution of retailers that enter a market and initially attempt to attract customers by offering lower prices. It suggests that eventually low profit margins will force such firms to evolve into more upscale markets, leaving their original customer base behind.

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The Answer of The channel evolution theory helps explain the evolution of retailers that enter a market and initially attempt to attract customers by offering lower prices. It suggests that eventually low profit margins will force such firms to evolve into more upscale markets, leaving their original customer base behind.

The Channel Evolution Theory Helps Explain the Evolution of Retailers