The following exercise will help you identify how business owners function within the different stages of retailing. The wheel of retailing describes how new forms of retail outlets enter the market. Usually, they enter as low-status, low- margin stores such as a drive-in hamburger stand with no indoor seating and a limited menu. Gradually, these outlets add fixtures and more embellishments to their stores (in-store seating, plants, and chicken sandwiches, as well as hamburgers) to increase the attractiveness for customers. With these additions, prices and status rise. As time passes, these outlets add still more services and their prices and status increase even further. These retail outlets now face some new form of retail outlet that again appears as a low-status, low-margin operator and the wheel of retailing to as the cycle starts to repeat itself.
As defined by the Wheel of Retailing, rank the following items in their positions on the wheel as time passes.
a) Rank the options below. Haute Mexican-To serve the customers seeking a fine dining experience, Maria opens an upscale, stand-alone, expensive restaurant serving haute cuisine.
b) Joe's Burrito Box-Recognizing an opportunity to sell low-price, no-frills lunches, Joe's Burrito Box sells boxed burrito lunches out of a mobile cart on Main Street.
c) Maria's Taco Stand-First to introduce Mexican food to the market, Maria opens a no-frills taco stand offering budget meals.
d) Maria's Mexican Restaurant-As Maria's Mexican food grows in popularity, Maria opens a restaurant in the local mall. The restaurant offers a wider menu, sit-down dining, and higher prices.