Competitive State of Independents vs Chain Retailers
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Questions and Answers

What is a key advantage of chain retailers compared to independents?

  • Personal image
  • Flexibility in locations
  • Control over investment costs
  • Centralized buying and distribution systems (correct)
  • What is a disadvantage of chain retailers as mentioned in the text?

  • Strong entrepreneurial leadership
  • Complex managerial control (correct)
  • Over-dependence on owner
  • Control over investment costs
  • Why do chain retailers have limited flexibility compared to independents?

  • Efficiency maintained by computerization (correct)
  • Labor intensive operations
  • Control over investment costs
  • Consistency and independence
  • What type of businesses are independent retailers?

    <p>Owned by individuals or small groups</p> Signup and view all the answers

    Which ownership form involves businesses like small local shops and family-owned stores?

    <p>Chain retailers</p> Signup and view all the answers

    What distinguishes independent retailers from other ownership forms?

    <p>They make their own purchasing decisions</p> Signup and view all the answers

    In a fully integrated channel system, which of the following is true?

    <p>One firm performs all production and distribution functions.</p> Signup and view all the answers

    Which level of the independent channel system has control over the entire production and distribution process?

    <p>Manufacturers</p> Signup and view all the answers

    What type of distribution is common in a partially integrated channel system?

    <p>Selective distribution</p> Signup and view all the answers

    Which of the following companies exemplifies a fully integrated channel system?

    <p>Louis Vuitton</p> Signup and view all the answers

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