Chapter 5, Problem 12AA

To determine

To explain: The advantages and disadvantages when shopping at club warehouse stores.

Explanation of Solution

Club warehouse stores are stores that contain less expensive commodities as compared to grocery stores. A consumer faces benefits as well as disadvantages when shops from these club warehouse stores. The primary benefit that consumer enjoys is the lower price of goods. A consumer who wants to buy a large quantity will be able to save more dollars as compared to grocery shops. While the disadvantages are that these club warehouse stores have limited brands and often contain value packs. So the consumer who has a large family will be benefited to buy a large pack. Moreover, this club has a membership fee that is an additional burden on the consumer.