2 Retail Trade

"What are the advantages of self-service to retailers?"

"Lesser requirement of shop staff

"What factors do small scale retailers depend on wholesalers for?"

"Supply

"How can retailers improve their profits according to the notes?"

"By improving product quality

"What are some reasons small scale retailers are still surviving?"

"Nearness to customers

"What are the 10 points to be remembered before starting a retail business?"

"Knowledge about retailing

"What does branding refer to according to the notes?"

"Selling goods under the manufacturer's trademark or brand name. "

"What are the advantages of branding to customers according to the notes?"

"Assured uniform quality

"How does self-service contribute to impulse buying according to the notes?"

"Lower price

"Describe the main characteristics of a department store."

"Many departments

"What features does a variety chain store typically have?"

"Combines features of multiple shops and department stores

"Explain the characteristics of a hypermarket."

"Very large supermarket

"What advantages do large scale retailers offer to businesses?"

"High rate of turnover

"What are some advantages of large scale retailers for customers?"

"Variety availability

"List some disadvantages of large scale retailers for businesses."

"High capital requirement

"What disadvantages do large scale retailers pose for customers?"

"Inconvenient locations

"Explain the concept of franchising."

"Franchising involves a successful business (franchiser) allowing another business (franchisee) to use its name under an agreement. "

"What are the advantages of franchising to a franchisor?"

"Advantages include spreading the name without much investment

"List the advantages of franchising to a franchisee."

"Advantages include training by the franchisor and requiring less advertisement. "

"What are the disadvantages of franchising to a franchisee?"

"Disadvantages include heavy payment to franchisors as fees and loss of some business controls. "

"Explain the concept of store cards."

"Store cards are plastic cards charged by the customer only with one retailer. "

"What are the advantages of store cards to retailers?"

"Advantages include increased sales

"List the advantages of store cards to customers."

"Advantages include discounts

"What do Electronic Point of Sale (EPOS) and Electronic Funds Transfer System (EFTS) refer to?"

"They refer to computer-based systems used for performing financial transactions electronically. "

"What are the advantages of EPOS to customers?"

"Advantages include increased purchasing power

"What are the disadvantages of EPOS to retailers?"

"Disadvantages include requiring more capital

"What are the disadvantages of EPOS to customers?"

"Disadvantages include the possibility of irrational buying behavior. "

"What is an after-sale service?"

"Support given by retailer

"What does a warranty guarantee?"

"Quality of a product within a specific period of usage or after purchase. "

"What advantages do retailers gain from after-sale services?"

"Better image

"What disadvantages do customers face with warranties?"

"Added cost to product

"What products can be sold using Automatic Vending Machines (AUMs)?"

"Cold bottled drinks

"What are the advantages of AUMs for customers?"

"Convenience

"What are the disadvantages of AUMs for retailers?"

"Limited product range

"What are the advantages of shopping complexes for customers?"

"Variety of goods

"What are the disadvantages of shopping complexes for retailers?"

"High rents

"What benefits do barcodes provide to retailers and customers?"

"Accurate billing

"What is e-commerce also known as and what does it involve?"

"Electronic Commerce

"What advantages does e-commerce offer to customers?"

"More variety

"What are the disadvantages of e-commerce for retailers?"

"Increased capital cost

"Define Home Trade."

"Buying and selling of goods for profit within the same country. "

"What are the two main divisions of Home Trade?"

"Wholesale trade and retail trade. "

"Explain Wholesale Trade."

"Bulk buying of goods from manufacturers

"Describe the role of a Wholesaler in the distribution process."

"An intermediary distributor between manufacturers and retailers. "

"What does Retail Trade involve?"

"Buying goods in small quantities from wholesalers and selling in even smaller quantities to end consumers. "

"Explain the concept of Channel of Distribution."

"The way goods are delivered from the producer to the customer

"List different Channels of Distribution mentioned in the notes."

"Producer to consumer

"What factors influence the choice of Channel of Distributions?"

"Producer capabilities

"Name some functions of a Retailer."

"Sourcing supply

"Discuss the characteristics of Large Scale Retailers."

"Purchase in bulk

"What are the characteristics of Multiple Shops under Large Scale Retailers?"

"Similar outlets nationwide