Consumer behavior at Costco company.
Costco, based in Issaquah, Washington, is an American operator of discount stores known as wholesale or warehouse clubs. Goods or products of merchandise are purchased in bulk or large quantities and sold at discounted prices to people who pay an annual membership fee. Costco store contains a supermarket and contains a variety of goods and it is an ever-changing selection of goods and services including luxury goods (Annual report). The stock encloses more than 140000 square feet of floor space is stacked high in the cavernous warehouse. It stocks 4000 different items at a given time despite the large area covered in a Costco store, one can still have access to pharmacy and gasoline stations.
Costco has grown from zero to a $3 billion sales in under six years. It has become the largest retailer store in the world ( Gambler 184). If it feels the wholesale price is too high for an individual product, they will generally not stock it. Despite Costco engaging in price reduction the cost of its stores is relatively high.
A pioneer of warehouse retailing club called Sol Price opened the first price club in San Diego back in 1976. The first Costco was opened in Seattle in the year 1983 by Jeffrey H. Brotman and James D. Sinegal. The price company and Costco combined into price/Costco which later in 1997 changed the corporate name into Costco companies, Inc. as time progressed, the company operated various stores in different parts of the world such as Mexico, Australia, Canada, the far east and United States (Hoover’s). The company was praised for giving its employees higher payments and better benefits than any field of retail.
The company does not do outside advertising and has no p