EZ-Trade Is a Retail Organization That Owns Specialty Stores for a Diverse

Multiple Choice

EZ-Trade is a retail organization that owns specialty stores for a diverse range of product categories, ranging from home furnishings and sporting goods to books and gourmet foods. With more than 50 stores, the firm is now considering entering the very lucrative low-cost market by launching Clothe-a chain of retail stores that offers affordable fashion for men, women, and children. Which of the following, if true, would strengthen the argument for being a low-cost player?

A) Customers who believe that they need high levels of customer service are more likely to choose a niche retailer.
B) An expected upturn in the economy will increase consumer purchasing power.
C) Being the low-cost player requires a company to examine every aspect of its supply chain in order to identify opportunities to improve efficiency.
D) EZ-Trade has a longer history selling clothes for men and women than it has selling clothes for children.
E) The retailer's logistics operations are more efficient than the industry norm.