What are the four characteristics used to classify retailers?
A) The location of the store, the relative prices they charge, the target customers, and the size of the store.
B) The amount of service they offer, the breadth and depth of their product lines, the relative prices they charge, and how they are organized.
C) The amount of service they offer, the relative prices they charge, the target customers, and the size of the store.
D) The breadth and depth of their product lines, the relative prices they charge, the location of the store, and the size of the store.
E) The amount of service they offer, the breadth and depth of their product lines, the relative prices they charge, and the size of the store.
Retailers : Meaning and Concept
Retailers are businesses and individuals who sell goods to consumers. They don’t usually manufacture their own products. They purchase goods from manufacturers or wholesalers and then sell them to consumers in small quantities.Globalization and technology have driven rapid changes in the retail industry over the past few decades. Today, the world’s largest retailer Walmart has established hypermarkets in various countries by using sophisticated technologies of communication and information systems.
Characteristics of Retailers
a) Retailers are the final intermediary between wholesalers and consumers, and they are the last link in the distribution chain.
b) Retailers buy goods in bulk from wholesalers and then resell them to consumers in small quantities.
c) Retailers maintain personal contact with their customers.
d) A retailer makes effective use of his shop display to attract customers.
e) Retailers perform all the marketing functions a wholesaler performs and also focus on advertising.
f) Retailers deal with a wide variety of merchandise and are often known as general merchants.
g) Normally retailers are divided into two categories: small-scale retailers and large-scale retailers.
h) Retailers strive to provide maximum satisfaction to their customers in a limited area.
Major Functions Performed by a Retailer
a) A retailer is both a buyer and an assembler of goods. Retailers are responsible for identifying the most cost-effective sources for obtaining goods from suppliers and passing those advantages on to consumers.
b) Stores and warehouses are functions performed by retailers. Consumers can order goods in bulk and they will be delivered according to their requirements.Storekeeping and warehousing ensure continuous availability of goods to consumers..
c) As a retailer, you are responsible for selling the products to the customers. In order to achieve your goals, you use various techniques or business practices.
d) An important goal of a retailer is to maximize customer satisfaction by delivering quality products and services on both a cash and credit basis. This means that retailers are always at risk of accruing bad debts because consumers fail to pay them.
e) Risk management is integral to the success of a retailer. As a retailer, you need to be prepared to deal with various types of risks, such as product damage or loss due to deterioration in quality, perishable items, or spoilage. The changing buying preferences or tastes of customers can also have a considerable impact on the retail business, or even damage to the products could be caused by natural disasters or the whims of nature.
f) Wholesalers and manufacturers often leave goods that are unused by retailers ungraded so that consumers will accept them readily. Retailers perform this crucial function. The retailer must pack the goods in small packages or small containers for the convenience of the customer.
g) Consumers’ feedback is passed directly on from retailers to manufacturers, so they can continuously improve in their service delivery. Since retailers are the direct point of contact with the consumers, they gather information regarding their changing tastes and preferences.
h) When new products are launched in the marketplace, retailers play an important role since they are direct interfaces with consumers and can communicate directly with the target consumers about the characteristics and advantages of the new products.
i) By designing product displays and visual merchandising in order to attract customers, retailers are responsible for promoting and advertising the products.
Service Provided by Retailers
To Manufacturers and Wholesalers
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