Why outlet stores exist averting cannibalization in product line extensions?
The firm sells older, less desirable merchandise through outlet stores to prevent cannibalization of regular store revenues by means of exploiting the positive correlation between consumers’ travel sensitivity and taste for new products.
Are outlets original?
In fact, outlet stores first originated as places where retailers sold damaged or products at low prices. Over the years, outlets have become shops that cater to consumer desire for name-brand products that are affordable and of good quality.
Why are outlet stores Bad?
Much of the merchandise sold at outlet stores is manufactured exclusively for them, and may be of lesser quality than the merchandise sold at non-outlet retail locations…. Outlet-specific merchandise is often of lower quality than goods sold at non-outlet retail locations.
Why do outlet stores still exist?
Created in the 1930s, outlet stores allowed retailers to dispose of unpopular items at fire-sale prices. Today, outlets seem outmoded and unnecessary—stores have bargain racks, after all. Donald K. Ngwe explains why outlets still exist. Why do outlet stores exist?
What is the difference between factory outlet and retail outlet?
Manufacturers who sell only their own products at a reduced price run factory outlets. On the other hand, retailers run outlet stores, and various brands are sold there. Factory outlets have been around longer than outlet stores and were typically built next to the factories where the products were manufactured.
Is it better to buy from an outlet or a store?
Much of the merchandise sold at outlet stores is manufactured exclusively for them, and may be of lesser quality than the merchandise sold at non-outlet retail locations…. Recognize that if you’re buying something that looks new and undamaged, the price may be lower for a reason.
What is a factor outlet?
Factor Outlets. A factory outlet store also exclusively sells products from a single company and its vendors — but not necessarily the same products as are available in its other retail outlets. Historically, outlet stores sold excess or flawed merchandise at a discount, getting rid of otherwise unsellable items. That’s changed over time, however.