Theory question 104
Distributive Trade(a) Define product retailing.
(b) Outline any three roles performed by the wholesaler to the manufacturer.
(c) Identify any three problems associated with distribution of products.
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(a) Product retailing is the sale of goods in small quantities directly to final consumers.
(b) Any three: buys in bulk, saving the manufacturer the cost of many small sales; provides storage/warehousing; finances the manufacturer by paying promptly or in advance; gives market information on consumer tastes; advertises and promotes products; bears risks of price changes and damage; transports goods.
(c) Any three: poor roads and transport; inadequate storage; too many middlemen; hoarding and artificial scarcity; insecurity; poor communication; high cost of fuel; multiple taxes and levies; smuggling.
Wholesalers link manufacturers with retailers.