[quote=briansd1]
Costco strategically sell certain premium items at low prices to “surprise and delight” their customers.
It’s a branding thing. Shoppers therefore believe that everything that Costco sells is better quality and cheaper.
Most people can’t determine quality and value, independent of branding.
Branding also has to do with social standing. Many will shop at Costco for the cheap prices, but they won’t shop at Walmart because it’s “ghetto”.
Arco has a “ghetto” image. The off brand independent gas stations suffer the same problem. They tend to be run-down and not where you want to be seen. People don’t want to drive their nice cars there. But Costco is OK.[/quote]
It’s hard to find a place than Costco if you are a family of five and you prefer Naked over Kool-Aid. Also, Costco workers are unionized and they still manage to put a competitive product on the market. I refuse to shop at Walmart because of the way they treat their workforce. Likely a losing battle, but I can afford to put some money where my mouth is.
