1.5 - Choosing Where To Buy

Question 1

What is a manufacturer?

Answer 1

A person or company that produces finished goods from raw materials by using various tools, equipment, and processes,

Question 2

What is a wholesaler?

Answer 2

A person or company that sells goods in large quantities at low prices, typically to retailers,.

Question 3

What is a profit?

Answer 3

A financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something,.

Question 4

What is a retailer?

Answer 4

a person or business that sells goods to the public in relatively small quantities for use or consumption rather than for resale. A retailer purchases goods in large quantities from manufacturers, directly or through a wholesaler, and then sells in smaller quantities to consumers for a profit

Question 5

Explain the process from manufacturers to retailers.

Answer 5

1) Manufacturers have produced
products

2) Manufacturers distribute products to wholesalers

3) Wholesalers add cost and profit to the price they charge retailers

4) Retailer then sells product directly to consumer, they also add cost and profit to arrive at the recommended retail price

Question 6

What is the meaning of distribution change?

Answer 6

The ways of getting the product to the consumer

Question 7

Mail Order?

Answer 7

A system of shopping in which the consumer completes and post an order form, usually from a magazine or catalogue and receives products through a mail

Question 8

Online Shopping

Answer 8

Purchasing products via the internet

Question 9

Advantages of Mail Order

Answer 9

• a greater range of products available than found in retail stores
• the convenience for consumers with a disability or those who live in remote communities

Question 10

Disadvantages of Mail Order

Answer 10

• losing money if business doesn’t send the product
• products appearing to be different in reality from the way they appear in the catalogue

Question 11

Advantages of Online Shopping

Answer 11

• efficient comparison shopping
• increase in range of sources from which you can buy
• allows for the use of mobile devices and apps which make online shopping easier

Question 12

Disadvantages of Online Shopping

Answer 12

• a delivery charge may be added to the price
• the return of a faulty product will take time and effort
• supplying credit card details can be risky unless site is secure
• proliferation of scams and internet frauds

Question 13

Types of Retail Outlets?

Answer 13

Convenience ‘Corner’ Stores
- Sell variety of food items, magazines and newspapers (prices at these stores are usually higher than at supermarkets and their is generally less choice available, but they are convenient).

Speciality Stores
- Specialise in either one type of product or service or a limited range of a few products

Discount Variety Stores
- The goods are often near the factory where the goods were manufactured
Factory Outlets
Department Stores
Supermarkets