Question

Many U.S. consumers purchase store brands like Kirkland at Costco because they provide a lower cost alternative to other brands. Companies like Costco use a __________ strategy to sell products that they do not manufacturer themselves.

Answer 1

Answer: PRIVATE BRANDING STRATEGY.

Explanation: Private branding is defined as a method by which a business produces a commercial brand of product using another company that is usually not owned by them in order to save cost. This strategy saves the business involved in private branding costs such as research, quality assurance, equipment, etc.