[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]
