The Small Shop which earlier recorded an annual increase of approximately 12% in revenues has been stagnating at 4% for the last three years, during which e-commerce sidelined brick and mortar outlets. The shop is struggling to increase profitability. In general, The Small Shop has been offering a discount on MRP to compete with ecommerce prices. Which of the following is the BEST reason for The Small Shop NOT to reduce the current discount offered to the customers?
Explanation:
Option 1 is not related to the discount and can be eliminated. Since other customers shop for low-end peripherals, it is not the best reason for not reducing the discount on all other products. Option 3 is the best reason as customers will readily buy discounted products as compared to waiting for a long-time to receive products from e-commerce websites. Option 4 talks about e-commerce while the question pertains to The Small Shop. Eliminate it. Option 5 is also incorrect as only contemplating starting a business does not imply that a new business will be opened. Hence, option (c).
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