10 Questions
What is the definition of retailing?
The sale of goods to end users, not for resale, but for use and consumption by the purchaser.
Why is retailing important?
Retailers are the final link in the supply chain between manufacturers and consumers, allowing manufacturers to focus on producing goods without having to interact directly with end-user customers.
What are the different points of purchase for retail?
Brick-and-mortar retail store, Internet shopping website, catalog, and mobile phone.
What is the role of retailers in making the purchase of goods easy for consumers?
Retailers should make the purchase of goods easy for the consumer by providing salespeople, customer service for Internet shopping websites, and detailed descriptions, photos, and toll-free phone numbers for catalogs.
What is the relationship between manufacturers, retailers, and consumers?
Manufacturers sell large quantities of products to retailers, and retailers attempt to sell those same quantities of products to consumers.
What are the additional services some retailers offer to enhance the customer experience?
Personal shopping consultations and gift wrapping
What is the main difference between wholesalers and retailers?
Wholesalers sell in large bulk quantities, while retailers sell in small quantities directly to end-users at a higher price.
Why is the retail price always higher than the wholesale price?
The added cost of selling merchandise to end-user customers - labor, rent, advertising, etc. - is factored into the pricing of the merchandise.
What are the roles of the key players in a typical retail supply chain?
Manufacturers produce the goods, wholesalers purchase finished goods from the manufacturers and sell those goods to retailers in large bulk quantities, retailers sell the goods in small quantities to the end-user at a higher price, and consumers are the end users who buy the goods from the retailer for personal use.
What exceptions exist in the traditional retail supply chain?
Some of the world's largest retail companies like Walmart and Amazon.com deal directly with manufacturers, without the need for a wholesaler in the middle of the transaction.
Test your knowledge of retailing with this quiz covering the basics of retail, including the sale of goods to end users, different points of purchase, and the retail transaction process.
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