Justify the following statements.
1) Wholesaler sells goods in large quantities.
2) Wholesaler maintains price stability.
3) Retailers provide home delivery of goods to customers.
4) Wholesaler performs various marketing function.
5) Authorized dealer do not have other products of other manufacturers.
6) General stores are generally situated near residential areas.
Departmental store has centralized management system.
8) Packing plays an important role in selling the product in the supermark
9) Chain stores sell a limited range of goods.
10) There is no scope for bargaining in one price shop.
std 11
Oc
chp 2
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1) The wholesaler sells goods in large quantities.
- Wholesaler is responsible to buy goods in bulk from the manufacturer and sell it to retailers in small quantities in order to carry out business.
- It also bridges the gap between the retailer and the manufacturer as a manufacturer cannot directly contact the small retailers who are spread throughout the country.
2) Wholesaler maintains price stability.
Wholesaler maintains the price stability by ensuring a regular supply of goods in the market and preventing them from hoarding and black marketing.
Explanation:
- Wholesaler provides ready delivery of goods whenever demand is raised in the market.
- He not only supply goods conveniently but also prevents false demand and smuggling of goods for personal profit.
- He is responsible for maintaining demand-supply balance in the market by fulfilling the needs of consumers and taking care of the storage of goods and ensuring regular business for the manufacturer.
3) Retailers provide home delivery of goods to customers.
- Retailers are the front end and last link in the distribution system.
- Now a day, due to e-commerce and large competition, retailers provide home delivery of goods to customers.
- This helps them in retaining the customer base and ensuring regular business.
4) Wholesaler performs various marketing function.
Functions performed by wholesalers:
- Purchases goods in bulk and sells it to retailers in small quantities.
- Stores goods from a variety of producers either within the country or from abroad.
- Transporting the goods to retailers when the demand arises
- Grades and standardizes the goods on the basis of color, size, shape, quality, etc which help in comparing them.
- Gives finance to the manufacturer by giving them money in advance and also to the retailer.
- They are risk bearers in case of damage while storing product or wiping out of goods.
5) Authorized dealers do not have other products from other manufacturers.
- Authorized dealers are one who has agency of particular manufacturer. They are entitled to sell goods of a particular manufacturer and not of other manufacturers.
- It sometimes, restricts their business scope as depending on the demand of products the variety available to them is limited.
6) General stores are generally situated near residential areas.
- General stores are the shops where all the utility items for the home are available.
- They cater to the daily needs of the consumers ranging from eatable to toiletries which are used in households on a daily basis.
- Thus, they are situated near the residential areas to cater to their demands of bread, milk, vegetables, soaps, groceries, etc.
7) Departmental store has centralized management system.
- Departmental store has a centralized management system in order to maintain the sale and purchase of a large amount of goods.
- The variety of goods is present in the store whose management is not possible by human beings.
- So centralized management system helps in managing the inventory and day to day sale and purchase of store In order to calculate the profit.
8) Packing plays an important role in selling the product in the supermarket
- In the supermarket a wide variety of goods are available and based on the packing, the consumer gets attracted to the goods.
- Packing not only prevents the good from damage but also make it look new and attractive. This enhances the sales of goods.
9) Chain stores sell a limited range of goods.
- Chain stores are very popular these days in order to cater to the vast customer base and expand the business in other cities and other regions in the same city.
- It not only makes the items convenient for the consumer but also increases business.
- However, limited options for goods sometimes restrict their business when the consumer tries to look for other options available in the market.
10) There is no scope for bargaining in one price shop.
- When the prices are fixed in the store, then bargaining would be waste of time as the retailer will not listen and would as you to buy the products from other shops where you could find it at a cheaper price.
- One price shop usually keeps the nominal price in order to cater to their customer base as they are confident that the same price is either not available elsewhere or the same item is exclusive on their store.
Learn more about Wholesalers:
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