2) Develop of list of expenses or costs for a department store and categorize them as fixed, variable and semifixed?
4) Provide an example of intratype competiton, an example of intertype competition. Can a retailer face both intratype and intertype competition at the same time.
6) Describe the wheel of retailing theory of retail competitio. WHat is the theory's major strength and weakness.
Some of the fixed expenses for a department store are those associated with rental costs or opportunity cost of capital invested if the place is owned, cost of permanent staff. Some of the semi-fixed costs are those related to utilities which are more or less fixed but may vary slightly due to changing seasons, such as electricity, heat and water, etc. Other semi-fixed cost are those of contract staff such as cleaning staff, etc. Investment on working capital is a kind of semi-fixed or even variable costs because it will fluctuate from month to month and heavily depends on the demand for goods and the need for inventory. Variable costs include costs incurred on marketing, advertising and promotion, stationary, etc.
Intratype competition is the conflict (or competition) between firms of the ...
Intratype competition, wheel of retailing theory