Retail Trade Overview

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Questions and Answers

What is one main advantage of using an automatic vending machine for retailing?

It allows for real-time online transactions.

It eliminates the need for physical inventory.

It requires substantial initial investment.

It can operate without human assistance. (correct)

Which type of retail trade is characterized by selling a variety of products under one roof?

Multiple Shops

Chain Stores

Departmental Store (correct)

Mail Order Business

Which statement correctly defines internet retailing?

Providing services and products exclusively through mobile apps.

Selling goods directly in physical stores.

Transacting sales through online platforms. (correct)

Engaging customers via telemarketing methods.

What is a key characteristic of multiple shops in retailing?

They sell similar products under the same brand across various locations. Signup and view all the answers

What is a potential challenge associated with retailing through automatic vending machines?

Low customer engagement compared to traditional stores. Signup and view all the answers

What is a primary advantage of Internet shopping?

It allows shopping from anywhere in the world Signup and view all the answers

What is a disadvantage of using automatic vending machines?

Buyers cannot inspect the goods before purchasing Signup and view all the answers

What is a key feature of departmental stores?

They offer a wide variety of products in separate departments Signup and view all the answers

Which of the following describes the process of mail order shopping?

Selecting goods via printed catalogs and placing orders through mail Signup and view all the answers

How do multiple shops benefit consumers?

They provide a consistent quality of products Signup and view all the answers

In what way are Super Bazars beneficial for customers?

They encourage competitive pricing and diverse choices Signup and view all the answers

What is one key difference in location between departmental stores and multiple shops?

Departmental stores are found in central places. Signup and view all the answers

What is a characteristic of the pricing strategy in departmental stores?

Prices differ from one departmental store to another. Signup and view all the answers

What is a major limitation of Internet shopping?

Risk of fraud and dishonesty Signup and view all the answers

Why is tele shopping not widely used by consumers despite its convenience?

Consumers prefer traditional shopping methods Signup and view all the answers

How do the goods offered in multiple shops differ from those in departmental stores?

Multiple shops deal in a few items from one manufacturer. Signup and view all the answers

What common facility is not available at multiple shops?

Credit facility for purchases. Signup and view all the answers

What distinguishes modern malls from traditional retail environments?

Malls are equipped with facilities for various services. Signup and view all the answers

How do malls enhance the shopping experience for consumers?

Through state of the art architecture and spacious shops. Signup and view all the answers

In what way can malls serve as venues beyond shopping?

Malls can host receptions for events like weddings. Signup and view all the answers

Which of the following is NOT a feature typically found in modern malls?

Limited choice of brands. Signup and view all the answers

Study Notes

Retail Trade

Retail trade involves selling goods directly to consumers in small quantities.
Retailers perform various functions, including buying, assembling, storing goods, offering credit, providing services, and disseminating market information to producers.
Retail trade can be classified into small-scale and large-scale.
Small-scale includes itinerant and fixed shop retailing.
Large-scale includes departmental stores, multiple shops, and super bazaars. These often offer a wider variety of goods at one location.

Meaning of Retail Trade

Retail trade involves the sale of goods in small quantities to consumers.
Retailers are intermediaries between wholesalers/producers and the end consumer.
Retailers facilitate the purchase process by making goods accessible and convenient and providing specific services to consumers.

Types of Retail Trade

Itinerant Retailing: Retailers sell goods directly to consumers while moving from place to place. (e.g., peddlers, street vendors, hawkers).
Fixed Shop Retailing: Retailers operate from a permanently fixed location, where they sell wares. (e.g., one shop, corner shops)
Large-Scale Retailing:
- Departmental stores: Selling various types of goods in different departments within one building.
- Multiple Shops: Stores selling the same products from a standardized design under one brand name, often in several locations across a city or region.
- Super Bazars: Large-scale retail establishments that usually stock a large variety of everyday goods.
Non-store Retailing: Methods of selling goods without requiring customers to visit a physical store.
- Mail order business: Goods are ordered and dispatched via mail.
- Tele-shopping: Goods are ordered and delivered via telephone or television.
- Automatic vending machines: Customers buy goods using coins/tokens in designated machines.
- Internet shopping: Goods are ordered and acquired by using the internet and an online commerce platform.

Features of Large-Scale Retail Trade

Large variety of goods
Providing services to large number of customers
Buying goods in bulk, often directly from producers to avoid intermediaries, potentially creating lower costs and lower prices for consumers.
Typically larger physical space than shops in small-scale retail.
Require higher capital investment to operate.
Often located in high-traffic areas.

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Description

This quiz covers the fundamentals of retail trade, including its definition, functions, and classifications. Participants will explore different types of retailing, such as small-scale and large-scale operations, and understand the role of retailers as intermediaries in the market.