Wal-Mart is no doubt the biggest retail store in North America. It is considered to be the most efficiently run retail business in the world. Wal-Mart compared to luxury retailers have a lot of contrasting factors both in goods and services provided. The most significant factor that I see when one is to compare Wal-Mart to a luxury retailer is the price. Wal-Mart is considered to be a discount retail store which is why their products are reasonably priced goods whereas luxury retailers tend to be highly priced.
To contrast the Customer Benefit Package of Wal-Mart against a luxury clothier for purchasing a suit or a new formal dress, there are many contributing factors. Different people look for different types of benefits from the products to satisfy their needs. Typical sources of benefits are Good Comparative Price, Good Quality, Good After-Sales Service, Reputable Company Image, Well Known Product/Brand, Low After-Sales Costs, Prompt Delivery, Well Designed Product, Fashionable, Ease of Purchase, and Reliability.
In terms of price, Wal-Mart has definitely an advantage over its competitors particularly a luxury clothier in this case. Let us say we compare Wal-Mart to Zara. Zara’s prices are definitely higher than Wal-Mart. In terms of quality, Zara sources out more quality materials used on their products to provide their consumers with that certain quality they are expected of because of the name as compared to Wal-Mart, which limits their stocks on a per style, per season basis due to purchase cost. This gives the customer a sense of pride knowing that not too many people will have the same item on their closet. Zara or any luxury clothier is focused more on quality design for this is their main area of business. They spend on the design, style and quality. A luxury clothier or Zara for that matter is a well-known brand. Consumers buy their products because of their name. They have trust in these brands. These brands carry sophisticated...
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