How is the Quality Level strategy defined in retail?

The Quality Level strategy in retail is defined as providing premium products for high-income customers or affordable products for low-income customers. This approach recognizes that different consumer segments have varying needs and preferences based on their income levels. By targeting premium offerings to affluent consumers, retailers can capitalize on the demand for high-quality, exclusive products that enhance the shopping experience for this demographic. At the same time, by offering affordable products to low-income consumers, retailers ensure that they cater to a broader audience, meeting essential needs without compromising quality.

This balanced strategy fosters brand loyalty and customer satisfaction across diverse market segments, promoting inclusivity while maximizing sales potential. It reflects an understanding of market segmentation and consumer behavior, enabling retailers to optimize their product assortments in alignment with the purchasing power of their target customers.