Economies of Scale:
D Mart has 110 stores spread across India. D Mart buy products for its whole stores in bulk. So here as the percentage change of output increases, then the cost of production decreases.As they buy in huge quantities they bargain and get products at lower cost in wholesale.
Economies of Scope:
D Mart has almost all type of products from FMCG to clothing,electronic gadgets, offering multiple products in a single store. Here products share common inputs i.e single store, which has multiple outputs i.e different products, results to cost reduction.
Price Discrimination by Self Selection:
As D Mart offers 1 + 1 offer schemes and many other discounts, people are willing to pay for more products and going often to buy.
People respond to Incentives:
As D Mart offers products at low prices more people go to D Mart to buy FMCG products as they are available at low costs.
Utility:
The Satisfaction you get after purchasing products at low cost in D Mart as we get them at lower price than other shops.
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