In the retail industry, a "Category Killer" is referred to as:

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UGC NET Paper 2: Management 30th Nov 2021 Shift 1
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  1. A multi-category large discount store that is famous for its wide selection of products
  2. A speciality store wedded to discounting and domination of a product category
  3. A store in a residential area and offers all household goods and fresh groceries
  4. A unique 24/7 store located on major highways and also located in fuel stations

Answer (Detailed Solution Below)

Option 2 : A speciality store wedded to discounting and domination of a product category
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UGC NET Paper 1: Held on 21st August 2024 Shift 1
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50 Questions 100 Marks 60 Mins

Detailed Solution

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 Key Points

Category Killers

  • These typically dominate a product category by offering low prices and a wide product selection.
  • Category killers proliferated during the 1980s and 1990s but fell by the wayside as online retailers took centre stage in the subsequent decade.
  • A category killer is a large retail chain superstore that dominates its product category and puts less productive and highly specialised merchants out of business.
  • A category killer is a large retail store that has a wide product selection and attractive prices.
  • It is similar to a speciality store but wedded to discounting and domination of a product category.
  • It dominates other stores in the same product category and drives rivals out of the market.
  • It has a competitive advantage due to its wide choice of products, affordable prices, and huge marketing campaigns.
  • It is a large, everything-in-one store that dominates a product category.
  • It’s a serious competitor for other smaller stores as it usually has a wide selection of products and lower prices.
  • Its market penetration, pricing, and product assortment provide such big-box stores with a competitive advantage.
  • Examples include Walmart, Home Depot, and Staples.

Therefore, the correct answer is A speciality store wedded to discounting and domination of a product category.

Additional Information

Specialty store:

  • A specialty store is a retail store that specialises in selling a specific product category.
  • These stores don’t sell large quantities of different product categories.
  • They are the opposite of big-box stores like Walmart that have everything a customer needs. Lululemon is a great example of a specialty store because it sells sportswear only. People can shop for leggings, joggers, hoodies, shorts, etc.
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