Solved: Question 1 – Marketing Management 1.What is the difference between Costco and Walmart? (Stress along the lines

Question 1 – Marketing Management

1.What is the difference between Costco and Walmart? (Stress along the lines of pricing and product categories.)

2. What is the difference between automatic vending and direct selling?

3.What role does store atmosphere play in retailing industry? Provide 3 examples on how store atmosphere attracts more customers.

Expert Answer

1.While both Cosctco and Walmart are similar firms there are some differences between them. Costco is more wholesale type of firm than Walmart and provides bulk goods at very lower prices that the only profit it gets is from the membership cards. Costco is situated more in urban areas whereas Walmart concentrates more on rural areas.The prices at Costco are higher as we have to pay for bulk quantities which may not be afforded by some people. In terms of profits Walmart always has upper hand .

2.Automatic vending is done using a vending machine which gives us the required goods by pressing the buttons and depositing the amount whereas direct selling involves people.It is the way of selling products directly to the consumers without the need for them to visit the stores.

3.For any retail firm, store atmosphere is very important. It helps in attracting consumers to the store. Even if we have the best quality product , but does not have a well arranged store, it is useless. That is the reason for many companies to invest large amounts in just creating a good atmosphere. Examples are KFC, Mc DONALDS etc., The atmosphere of these stores itself compels the consumers to visit them.

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