Final answer:
The collective group of customers served by a particular retailer is called the retailer's customer base, a term vital for businesses in understanding their main market and ensuring they meet the threshold population required for viability.
Step-by-step explanation:
The collective group of customers served by a particular retailer is often referred to as the retailer's customer base. These are individuals or groups that frequently interact with the retailer and make purchases, influencing the retailer's business. Retailers need to understand their customer base to sustain and grow their operations, considering factors like the threshold population to ensure viability.
Merchants and service providers are dependent on their customer base to stay in business, requiring a minimum number of customers within a certain area, known as the threshold population. For instance, a Wal-Mart store has a minimum threshold of about 20,000 people within its vicinity to be viable. On the other hand, a Starbuck's Coffee shop has a smaller threshold of about 5,000 people due to its product offering and range.
Understanding the concept of a customer base is crucial for retailers, as it encompasses a group of people that interact and transact with them, sharing a sense of aligned identity with the retailer's brand, which differs from an aggregate or a casual gathering of individuals who do not necessarily interact or share a common identity.