Question

Q29.)Mention the type of large scale retailer which has economy in advertising and explain its two demerits.​

Answer 1

Answer:

Consumer Co-Operative Stores:

Just as multiple shop system is an instrument in the hands of manufacturer to eliminate all middlemen in distribution, similarly, a co-operative store is an organisation owned, managed and controlled by consumers themselves to induce the number of middlemen and their commission.

Features of Consumers’ Co-operative Store:

i. It is a voluntary association of consumers duly registered under the prevalent Co-operative Societies Act. At least ten members are required to register a society or store. The registration gives certain privileges and exemptions which are not available to other non-cooperative bodies.

ii. Members of the store make joint-purchases and sales among themselves at the current market prices. Sale at market price is preferred to avoid unhealthy competition with other retailers.

Explanation: