The theory that suggests that established retailers must be cautious in converting from a low-end strategy to a high-end strategy is _____.
A)the wheel of retailing
B)scrambled merchandising
C)rationalized retailing
D)the retail life cycle

Question

Quizplus · Accepted Answer

The wheel of retailing theory suggests that retailers tend to start as low-end discounters and gradually increase their prices and services as they become established. However, this gradual conversion can lead to potential problems such as losing customers who were attracted to the low prices or failing to meet the expectations of the new, higher-end customers.

The Theory That Suggests That Established Retailers Must Be Cautious