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    Question

    Specialty discount outlets focus on one type of product, such as electronics, or books, at very competitive prices. These outlets are referred to in the trade as:

    A merchandise stores Correct Answer Incorrect Answer
    B supercentres Correct Answer Incorrect Answer
    C hypermarkets Correct Answer Incorrect Answer
    D category killers Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Everyday low prices' is the central philosophy of 'category killers', such as Toys and Us and IKEA. These often sell from low cost out-of-town 'sheds' offering a huge range and good value. Economies of scale and buying power help these traders keep costs down, but they also get customers to do more. Buy a bike from Toys And Us or furniture from IKEA and you will have to assemble it yourself. IKEA also does not deliver, so it keeps costs down by having a simple operation where customers work as warehouse, distribution and assembly staff.

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