Theory question 104
Distributive Trade(a) Define the term distribution.
(b) Outline three ways in which the retailer is important to the consumer.
(c) Explain three disadvantages of the operations of middlemen in the distribution process.
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(a) Distribution is the process of moving goods and services from producers to final consumers, through wholesaling, retailing, transport, storage, etc.
(b) Any three: stocks a variety of goods for choice; sells in small quantities; located near consumers at convenient times; gives credit; gives advice and after-sales services; delivers goods; passes consumers' wishes to producers.
(c) Any three: each middleman adds a profit margin, raising prices; hoarding to create artificial scarcity; delays and spoilage of perishable goods when there are too many; adulteration or repackaging to cheat consumers; exploitation of farmers by buying cheaply; misleading advertising.
Middlemen are wholesalers and retailers.