Channel of Distribution

Question 1

What is the role of the Retailer?

Answer 1

They buy in large quantities from the wholesaler and sell in small amounts to the consumer.

Question 2

List two advantages of large-scale retailing to the retailer.

Answer 2

Buying in bulk and saving on transport.

Question 3

List two advantages of large-scale retailing to the customers.

Answer 3

One-stop shopping and competitive price.

Question 4

List the two disadvantages of large-scale retailing to the retailer.

Answer 4

Large capital and administrative difficulties.

Question 5

What is markup?

Answer 5

Amount added to a purchase price.

Question 6

What is overhead?

Answer 6

The expenses of running a business.

Question 7

What is gross profit?

Answer 7

Profit before expenses is paid.

Question 8

What is net profit?

Answer 8

Profit after expenses is paid.

Question 9

State 3 more roles of the retailer.

Answer 9

Provide after-sale service, provide credit to customers, and provide a wide variety of goods.

Question 10

List the 10 types of retailers.

Answer 10

Automatic vending machines
Street vendors
Market stalls
Independent shops
Supermarket chains 
Hypermarkets 
Mail-order
Department stores
Multiples
Itinerant