Which theory suggests that a retailer becomes vulnerable to competition when its costs (and profit margin requirements)increase?
A)the retail life cycle
B)rationalized retailing
C)the wheel of retailing
D)scrambled merchandising

Question

Quizplus · Accepted Answer

The wheel of retailing theory suggests that a retailer starts as a low-cost, low-price operation that slowly increases its costs and profit margin requirements as it becomes more established. As its costs increase, it becomes vulnerable to competition from new low-cost, low-price entrants at the entry level of the retail market, which can lead to the retailer being pushed out of the market entirely.

Which Theory Suggests That a Retailer Becomes Vulnerable to Competition