Distinguish among discount houses,price-cutting by conventional retailers, and m
ID: 1167497 • Letter: D
Question
Distinguish among discount houses,price-cutting by conventional retailers, and mass-merchandising. Forecast the future of low price selling in food, clothing , and appliances. How will the internet affect the future? Distinguish among discount houses,price-cutting by conventional retailers, and mass-merchandising. Forecast the future of low price selling in food, clothing , and appliances. How will the internet affect the future? Distinguish among discount houses,price-cutting by conventional retailers, and mass-merchandising. Forecast the future of low price selling in food, clothing , and appliances. How will the internet affect the future?Explanation / Answer
1: Discount houses are large retail store that offers consumer durables at heavy discount, due to its bulk-buying power and bare minimum expenses on customer service.
> Sell ‘hard goods’ (appliances, furniture, etc.) at large discount
> Customers pay cash
2: Mass-merchandising: retail store that sells large quantities of goods quickly through discounting, customer self-service, or unadorned display and packaging, as in a warehouse.
> Sells all kinds of stuff (soft goods / Hard goods) (soft goods are which people consume everyday such as milk,oil, snacks, soft drinks, and toilet paper.)
> Extremely cheap due to low margine.
3: Price-cutting by conventional retailers: retailors sells some compititive goods at discount to avoid price compitition.
> Discounts are a competitive reaction
> No permanent discounts intended
> More tactical than strategiy
4. Price is always a matter of concern for purchase and selling in market, thus both the sides want it to be lower as possible. now with the emerging technologies and the increasing education and professional management techniques everyone has the opportunity and everyone knows the benefit of selling at low price and market coverage. all these has has made the markets highly competitive. So there is now a constant need in the lower the price of products. Food, clothings and appliances have a huge market these days, and they are highly competitive markets so low price is a big concern for these. the rationale in the 3 products markets and their competitiveness is in:
Food: Now a days all the economies try to be a manufacturing hub and theus there becomes a need for them for preservation & security of their agro based products and food. thus making the ready food and packaged food market are emerfging very highly.
Cloths: increasing fashoin sense with the decreasing distances and use of IT in todays world with the fusion in the culture and social mixes, the maket and the competition for cloths has been and will increase much higher.
Appliances: With the working world today, the focus is been shifting to work by machines for time saving in working then in the manual workings, and this will be increasing at much higher rate in near future and thus the market and compitition too.
5. Internet Effect on Future: Today there is no area of human is remaining untouched as to the IT and Technology, and thus by internet itself. the world markets are global and the distances are curtiled now. There is now everything possible with IT and internet. for business to cut their price and sell at low price is now possible with internet by not having even a single intermediary between the maker and the user. So there is a huge possibility for price cutting and low price selling and the future of the business world.