Applied Marketing (Third edition)

"Better service is only more valuable if customers are willing to pay more for it.

It seems obvious that customers would prefer to shop in more attractive stores with better service.

However, Ross Dress for Less strategically chooses not to spend money to make its stores more attractive or to provide better service specifically because Ross's customers would rather pay less than have better service.

Ross emphasizes that they are a "treasure hunt" shopping experience where customers never know what they will find, but they will inevitably find a good deal if they search the store.

This strategy has worked well for them to this point.

While other retailers downsize or close stores, Ross Dress for Less continues to open new stores.

Similarly, discount airlines such as Southwest in the United States and Ryanair in Europe succeed by offering less service but lower prices than traditional airlines.

Discount airlines continue to gain popularit