Question

A retailer that carries such a large quantity of merchandise in a single category at such good prices that it makes it impossible for customers to walk out without purchasing what they need, thus killing the competition, is known as a(n) _____.

Answer 1

A retailer that carries a large amount of merchandise in a single category at competitive prices and makes it difficult for customers to leave without making a purchase is known as a category killer. These retailers use economies of scale to offer lower prices, often outcompeting smaller retailers and maintaining their position with a well-respected brand name.

Step-by-step explanation:

The retailer described in the question is known as a category killer. This type of retailer specializes in one particular category and carries a large quantity of merchandise within that category, often at competitive prices. This approach benefits from economies of scale, which allow for lower costs and price reductions, thereby outcompeting smaller retailers. Category killers often have a well-respected brand name that draws customers and sustains their market position. They can force competitors out of the market due to their ability to slash prices and offer a wide array of products, much like a major retailer such as Amazon does with its efficient production model and cost structure.