It's almost like that cliche romantic relationship where the worse one is treated, the more the attraction increases: CNBC's Lori Gordon Logan and Michael Beyman report on Costco:
Imagine a store that never advertises, has no signs in its aisles, doesn’t bag what you purchase, and charges you a fee just to walk in the door. With so many choices in the retail universe, who in the world would shop there?
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David Grogen, CNBC
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Limited selection, according to Danziger, makes it easier for the consumer to choose. “There was a research study in marketing that if you offer people 24 different types of jellies, you’re not going to sell as many as if you offer them six,” she said. “Making people decide, that causes confusion, and they ultimately decide to walk away. At Costco, you don’t have to make those decisions.”
“We try to create an image of a warehouse type of an environment,” said Jim Sinegal, Costco’s co-founder and recently retired CEO. “I once joked it costs a lot of money to make these places look cheap. But we spend a lot of time and energy in trying to create that image."
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