Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Internal Trade

Question:

Which of the following services are provided by retailers to Wholesaler?

A. Personal selling
B. Enabling large-scale operations
C. Regular availability of products
D. Help in promotion
E. Convenience in buying

Choose the correct answer from the options given below.

Options:

B, C and D

A, C, D

B, E and D

A, B, D

Correct Answer:

A, B, D

Explanation:

The correct answer is option 4- A, B, D.

Option C & D are services to consumers by a retailer.

Retailers serve as an important link between the producers and final consumers in the distribution of products and services. They provide useful services to the consumers, wholesalers and manufacturers. Some of the important Services to Manufacturers and Wholesalers are as follows- 

(i) Help in distribution of goods: A retailer’s most important service to the wholesalers and manufacturers is to provide help in the distribution of their products by making these available to the final consumers, who may be scattered over a large geographic area. They thus provide place utility.

(ii) Personal selling: In the process of sale of most consumer goods, some amount of personal selling effort is necessary. By undertaking personal selling efforts, the retailers relieve the producers of this activity and greatly help them in the process of actualising the sale of the products.

(iii) Enabling large-scale operations: On account of retailer’s services, the manufacturers and wholesalers are freed from the trouble of making individual sales to consumers in small quantities. This enables them to operate on, at relatively large scale, and thereby fully concentrate on their other activities.

(iv) Collecting market information: As retailers remain in direct and constant touch with the buyers, they serve as an important source of collecting market information about the tastes, preferences and attitudes of customers. Such information is considered very useful in taking important marketing decisions in an organisation.

(v) Help in promotion: From time-to-time, manufacturers and distributors have to carry on various promotional activities in order to increase the sale of their products. For example, they have to advertise their products and offer short-term incentives in the form of coupons, free gifts, sales contests, and so on. Retailers participate in these activities in various ways and, thereby, help in promoting the sale of the products.