Explain wal-mart-s core customer base is low-income consumer


According to Craig Johnson, president of retail consulting group Customer Growth Partners "Wal-Mart's foray into organics should help to bring down prices for consumers." Which of the following statements supports Mr. Johnson's argument?

a. Wal-Mart has a reputation for deliberately lowering prices to force its competi¬tors out of the market.

b. Wal-Mart is large enough that it can successfully pressure the U.S. Depart¬ment of Agriculture to force organic food farmers to lower their prices.By expanding the organic market, Wal-Mart would bring in economies of scale that would, when added to a competitive market, drive down prices.

c. By expanding the organic market, Wal-Mart would bring in economies of scale that would, when added to a competitive market, drive down prices.

d. Wal-Mart's core customer base is the low-income consumer. Therefore, to compete for this customer group organic food farmers will be compelled to lower prices.

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: Explain wal-mart-s core customer base is low-income consumer
Reference No:- TGS064784

Expected delivery within 24 Hours