Question

Question 23 of 28

Two grocery stores are located in the downtown area of a small city. The first offers excellent prices for buying large bulk quantities. The second does not have bulk offers, but offers lower prices on single items.
Use the passage to answer the question.
Why would both these stores attract a good number of customers?
A. Customers value different types of deals.
B. Customers have different brand loyalties.
C. Customers patronize both stores to maintain competition.
D. Customers do not have the information to choose the best option.

Answer 1

A. Customers value different types of deals.

Step-by-step explanation:

Both stores are located in the downtown area, which means both of them are accessible to different kinds of customers having different needs.

Customers will be attracted to the discount price they can get for bulk orders on the first grocery store. These types of customers are probably reselling the items at higher prices to get some profit or they're probably owners of other businesses. For example, a restaurant owner will purchase a bulk amount of sauce bottles in the grocery store rather than buying from a retail store.

On the contrary, customers who're attracted to the second grocery store are common people who only need to buy one to two items at a time for personal use. They don't need the bulk discount rate of the first store, thus, they'd prefer shopping on the second store.