Question

Which is typically what perceived as one of the main advantages of the main advantges of a big-box retailer? A) personalized customer service B) low prices C) convenient downtown locations

Answer 1

The correct answer is B) low prices.

One of the main advantages of a big-box retailer is low prices,

People call a big-box retailer to the big retailer’s store that is built in a large space and offers all kind of products for the consumer. It looks like a big box. Because is so large and sells many products and large volumes these retail stores have scale economies that allow them to offer very competitive prices. The high volume of sales, the profit margin of products is lower. This allows the store to offer low prices.

Answer 2

The correct answer is B) low prices.

Indeed, big-box retailers are always located outside cities and towns in order to avoid local taxation. Unless you live in the area they are never located downtown (unless they enjoy a local tax exemption). These are industrial outlets that seek to maximize profit while using the cheapest, smallest workforce so personalized customer service is nonexistent. Their only advantage is low prices and for many low income consumers it is a crucial one.