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• Chain stores have several outlets spread across a city state or even a country.
• Chain store owners follow a common theme of design and appearance of the exterior and interior for each store.
• They put same type of glow sign boards, provide same dress-code to the employees, use same type of furniture, menu, advertisement hoardings, etc. As a result they develop a common identification for their stores.
• Customers visiting the store if like the products start publicizing the store through word-of-mouth and the brand gains popularity. Whenever the customer goes in some other area or city and sees the same chain store he easily recognizes it and chances are he may visit it to enjoy the products.
• For example, whenever we come across Domino’s Pizza store we become familiar about its identification.
  All these factors together increase foot-fall.

All the chain stores will have similar exterior and interior designs, glow sign boards, uniform of employees, etc. This gives a common identification to all stores.

Itinerant traders are retailers who do not have a fixed place of operation. That is, they do not have a shop from where they sell their products. They are also known as mobile traders as they keep moving from place to place in order to sell their products.

The exterior designs and even interior layout of chain stores are similar. This helps customers to recognize and associate them easily with the store brand.

Hawkers and Peddlers

Correct option is (C) 4

These retailers do not have the fixed places to carry their trade and generally move from one place to another in order to sell goods. They can be usually seen along the road sides, streets, railway compartments, bus stands, and fairs etc. They usually possess that stock which can be conveniently sold during the day. They need limited funds to carry their business. These types of retailers deal in daily need articles like vegetables, fruits, milk, eggs and fishes etc. A brief explanation of this type of retailers is given as under: 

1. Hawkers and peddlars: These are the petty retailers who carry their products on their heads or on wheeled vehicles from door to door. They usually sell seasonal goods like fruits, vegetables and eatables and also sell certain other goods like pens, toys and utensils, etc. 

2. Cheap Jacks: They hire shops in different residential localities wherein they display their products for sale. They do not stick to one place; rather keep moving from one locality to another. They usually deal in household articles. 

3. Market Traders: They sell their products at periodical markets on ‘market days’. The markets may be weekly or fortnightly. They also sell their wares at different fairs and gatherings. 

4. Street Traders: These traders are found on the pavements of crowded streets or markets of the cities. They are also known as “pavement retailers”. In big cities like Calcutta, Delhi, Mumbai and Chennai etc., these traders are usually found selling their goods in different markets

Merits of Chain stores are:

1. Asa multiple shop, generally, sells articles which are necessities or semi-necessities, it has a large turnover. 

2. In the case of a multiple shop, one branch advertises the other as all the branches are dealing in identical goods. 

3. As it is generally established very near to the residential areas of the customers, it is easily accessible to the customers.

Demerits of Chain stores are:

1. It does not provide credit facilities to its customers. 

2. It does not provide services, such as the collection of orders through phones, free home delivery of goods, etc. 

3. It pays very little attention to the likes and dislikes of an individual customer, as it sells only a limited variety of standardized articles.

The chamber of commerce and industry is voluntary non-profit seeking association of business firms, i.e., industrial and commercial firms and even professional like chartered accounts of a particular region, formed for the purpose of promoting and protecting the industrial, commercial and economic interest of the region.

Merits of Departmental store are:

1. As it purchased goods in large quantities, it enjoys the advantages of bulk buying. 

2. As it sells many varieties of goods, it provides a wide choice in the selection of goods. 

3. As it deals in a large number of goods, the customer are able to make all their purchases at one place.

Demerits of Departmental store are:

1. As it is located in the centre of the city for away from the residential areas, it is not easily accessible to the customers. 

2. In a department store, there is no personal-contact between the owners and the employees, and between the employees and the customers. 

3. As the articles sold by a department store are generally luxuries, it, generally, serves the rich, and not the masses. Therefore. It cannot have a large number of customers.

Hawkers: A hawker moves about in residential localities. He carries his goods in a hand cart or bicycle. He deals in low-priced goods of daily use. For example, combs, toys, soaps, mirrors, bangles, vegetables, fruits, ice-cream, etc. 

Peddlers: A peddler also moves from house to house and sells articles of daily use. But he carries his wares on his head or on the back of a mule.Therefore, the basic difference between the two is that hawker has a cycle or cart to carry his goods while peddlar carries his goods on heads. So we can say that financially, peddler is weaker than hawker.

Role and functions of Chambers of Commerce are given below: 

1. Businessmen get valuable information free of cost. 

2. They can expand their business activities with the help of suggestions and advice from Chambers of Commerce. 

3. Chambers of Commerce creates markets for the products of their members by organising fairs and exhibitions. 

4. Businessmen get a common forum at which they can discuss problems and exchange views on matters of common interest. 

5. Differences and disputes among businessmen can be solved amicably.and economically with the help of Chambers of Commerce. 

6. Members take advantage of educational and training facilities offered by Chambers of Commerce. 

7. Chambers of Commerce undertakes research on behalf of their members. 8. Chambers of Commerce fosters a sense of cooperation among businessmen.

Retailer’s Services to the consumers:

1. He supplies information to the consumers about the arrival of the new products, and thereby, enables the consumers to purchase the latest types of goods. 

2. The retailer, generally, establishes his shop near the consumers. So, he relieves the consumers from the trouble of going over a long distance for making their purchases. 

3. He attends to the complaints of the consumers regarding the quantity and quality of the goods promptly.

Retailer’s Services to the Manufacturers:

1. He finds customers for the new products introduced in the market by the manufacturers through the wholesalers. 

2. He relieves the manufacturers from the task of collecting and executing a large number of small orders from the consumers. 

3. Because of his close contact with the consumers, the retailer studies the likes and dislikes of the consumers and brings them to the notice of the manufacturers through the wholesalers. The manufacturers are thus enabled to produce goods according to the need s of the consumers.

• Retailers are people who buy goods from wholesalers or producers and sell them to consumers.
• They come in direct contact with the customers. So, they understand their taste, preference, economic conditions more than producers, wholesalers or any other middleman.
• Based on customer’s profile, they provide information about the market and explain their features, to customers .
• This way they motivate the customers to buy and this is how actual sales take place. Moreover, to boost sales they also provide facilities of home delivery, credit and installments or even tie-up with finance companies for arranging loans for customers.
• Retailers also take the responsibility of arranging after sales services like installation of product, repair or refund for damaged products, etc.
• Hence, though a retailer is the smallest and last fastener of the sales channel he plays a very important role in deciding whether sales will occur or not.

Major differences between wholesalers and retailers are as follows:

The functions of a retailer are:

1. Connecting Link: A retailer acts as one of the connecting links in the chain of distribution of goods from the producers to the consumers. He is the last link in the chain of distribution. 

2. Storing: He stores in his shop a large variety of goods, and thereby, not only assures ready supply of goods to the consumers, but also meets the different tastes of the consumers. 

3. Transporting: He arranges for the transportation of goods from his shop to the consumers. Sometimes, he even arranges for the transportation of goods from the wholesalers to his shop. 

4. Selling: He sells the goods in his shop to the consumers for their consumption. 

5. Financing: The retailer, often, sells goods on credit to the consumers.

An automatic vending machine is a machine that dispenses items such as snacks like wafers, biscuits, etc. beverages, ice-cream, chocolates, news-papers, etc. to customer automatically after the customer inserts currency coins as mentioned on the machine.

There are many differences between wholesale trade and retail trade:

The features of retail trade are:

1. It involves the sale of goods to the final consumers. 

2. It requires the sale of wide varieties of goods. 

3. It implies selling in small quantities. 

4. A retailer sells goods to the final consumers. 

5. The turnover of retailer is, generally low.

A wholesaler is in direct contact with several retailers spread- across a vast geographical region. This helps him to obtain information about demand of the product, its feedback, customer’s preference, fashion, etc. of various regions. The wholesaler then shares this information with the producer.

At times either produces can ask for advance payment from wholesalers or wholesalers themselves may pay in advance to the producers as per trade policies or to assure that wholesaler would receive their order quantity on time. This helps producers to maintain less working capital.

Fixed shops are retail shops which carry on business from definite or fixed premises in the market.

Departmental stores:

• A departmental store is a retail store that sells a wide range of consumer goods in different product categories known as departments
• The wide variety of products that such stores offer is categorized into various , departments. For example, there will be a department of fruits and vegetables, another for grocery, cosmetics and so on.
• The objective of such stores is to offer customers goods for his daily needs to luxuries. So, a department store may sell vegetables and grocery for daily needs as well as well as luxurious cosmetics.
• The ownership and management of such stores is in the hands of a single person.

Characteristics:

• Large scale sales: Departmental stores sales a variety of goods on large scale.
• Separate department for each item: Each category of product is displayed in separate department.
• Ownership and management: The ownership and management of a departmental store is in the hands of a single person.
• Based in urban areas: These stores are mostly found in big cities.
• Training to employees: The store owner arranges special training for the store employees. The employees are trained on how to behave warmly with customers, how to encourage them to buy, how to arrange stock in departments, etc.
• High maintenance: Building infrastructure of departmental store and maintaining it is a costly affair. High cost is incurred on making departments, refrigeration and air-conditioning, lightening, salaries, etc.
• Facility to customers: Various facilities like drinking water, sitting area, Wi-Fi, eatery, etc. are provided to customers.
• Guidance: Customers are welcomed by the cordial staff. The staff provides information about various products by providing demonstration of those products. The staff also guides the customers in selecting and purchasing the right product for them

Automatic vending machines:

An automatic vending machine is a machine that dispenses items such as snacks like wafers, biscuits, etc. beverages, ice-cream, chocolates, news-papers, etc. to customer automatically after the customer inserts currency coins as mentioned on the machine.

• Greek engineer and mathematician called Hero of Alexandria invented vending machine.
• The owners of such machines load the machine with the products. The price of each item is mentioned on the machine in the form of currency coin. For example, a cold-drink charging ₹ 30 can be obtained by inserting three coins of denomination ₹ 10 each. He then, inserts the coins in the machine slots and press specific buttons. The items will be dispensed in the machine tray.
• The customer looks through the transparent glass of the machine and decides the item he wish to buy.
• The biggest advantage of these machines is that they can be operated for twenty-four hours non-stop.
• Moreover, one does not need to incur expense of staff, training, establishing a shop, etc.
• Vending machines are generally installed at public places like shopping malls, airports, railway station, etc.

Correct option is (B) Wholesaler

Wholesale trade:

• A trader who purchase goods in large quantity from the producer and sells them to retailers in small quantities as per their requirements is called a wholesaler and the trade is called wholesale trade.
• A wholesaler serves as a link between the producer and the retailer. Wholesalers provide various services to producers and retailers.

They are as follows:
(A) Services to producers:
1. Orders large quantity:

A wholesaler receives orders from various retailers. It then places a large order to the producer and helps the producer in large scale sales.

2. Information about market:

• A wholesaler is in direct contact with several retailers spread across a vast geographical region.
• This helps him to obtain information about demand of the product, its feedback, customer’s preference, fashion, etc. of various regions. The wholesaler then shares this information with the producer.
• The producer thus gains insight about market trend and market situation and keeps his product updated as per the market.

3. Freedom from storage of goods:

• Wholesaler orders goods in large quantity and stores them in his own godowns.
• This saves producers from owning unnecessarily large godown for storage.

4. Freedom from sales worries:

Wholesaler purchases goods in large quantity. This saves producers from selling goods in smaller quantities to several people. For example, 10 retailers in total may need 500 books. One the other hand a wholesaler alone can buy 500 books and supply them to those 10 retailers.

5. Relief of capital:

At times either producer can ask for advance payment from wholesalers or wholesalers themselves may pay in advance to the producers as per trade policies or to assure that wholesaler would receive their order quantity on time. This helps producers to maintain less working capital. ‘

6. Freedom from the risk:

• Wholesalers purchase goods in large quantities. The storage and maintenance of goods then becomes their liability.
• On the other hand producers become free from risk of goods getting diminished, wasted, destroyed, expired, etc.

(B) Services to retailers:

1. Supplies goods as per retailer’s requirement:

Wholesalers take orders from retailers and supply them as per their need. This saves retailers from having large storage spaces.

2. Goods on credit:

At times, wholesalers sell the goods to retailers on credit. This motivates retailers to conduct and expand their business with quite less capital.

3. Decrease advertisement expenses:

Apart from producers wholesalers also advertise the products to promote sales. This helps retailers to save their advertisement costs.

4. Redressal of complaints:

• Retailers are in direct contact with customers. If customers have any complaints regarding a product then they complain to retailers,
• Retailers pass these complains to wholesalers and wholesalers pass them to producers and solve complaints quickly.

5. Freedom from risk:

Wholesaler stores goods in large quantity and retailers have an option to buy them as per their demands. This help retailers to free from risk of goods getting diminished, wasted, destroyed, expired and price fluctuation.

6. Guidance:

Wholesaler has a large network of retailers of various types belonging to various areas or regions. So, wholesaler possesses a rich knowledge and information about a vast market. He shares his knowledge with retailers which work as guidance for them to increase their business.

Advantages of retail trade:
1. Options of selection:

A retailer keeps and sells products of several producers. Hence, customers get several options to choose from.

2. Home delivery of goods:

Some retailers provide their customers the facility of delivering the purchased goods at their homes even if the customers order on phone. This help customers to save their time and effort.

3. Redressal of customer complaints:

• Retailers are in direct contact with customers. If customers have any complaints regarding a product then they complain to retailers.
• Retailers pass these complains to wholesalers and wholesalers pass them to producers and solve the complains quickly.

4. Selling goods on credit:

Frequent customers develop good rapport with retailers. So, retailers also provide credit or even installment facility to such few customers based on their rapport with retailer and economic condition.

5. After sales service:

Retailers provide after sales services such as assisting in installation, repair, exchanging faulty products or taking them back, etc.

6. Helps customers to make purchase decision:

Retailers provide customers information on utility, features, quality, price, etc. of the products. Their explanation and selling skills helps the customer make decision about buying a product.

7. Freedom from storage:

Retailers provide goods to customer as and when they need. This helps customers to free themselves from unnecessarily stocking products.

8. Guidance to customers:

• Retailers guide the customers in various ways. They guide them about the changes likely to occur in near future, new products and schemes about to be issued by producers, guide them about supply or demand of a product, price rise that it may witness, etc.
• Correct guidance can help the customer to choose a right product at a right time.

Limitations of retail trade:
1. More capital investment:
Customers of different taste, preference and economic condition come to retailers. Hence, retailers need to keep a variety of products to cater their needs. As a result, retailer needs more capital investment.

2. Risk of deterioration of perishable goods:
Perishable goods like milk and milk products, fruits and vegetables, etc. perish very fast. If a retailer is unable to sell them on time they perish and the retailer has to bear the loss.

3. Risk of goods getting outdated:
The market trend changes with changes in technology, customer’s taste, fashion, etc. For example, people now mostly prefer smart phones over regular mobile phones. In such situations a retailer need to sell old unsold outdated stock at cheaper prices to recover his investment.

4. Risk of loss, shortage or fluctuations of price:
At times goods may get damaged at retailer’s shop, or their prices may fall or increase, or their supply would be less compared to their demand. All such situations cause loss to retailer.

5. Bias:
Sometimes a retailer may have some bias for a particular producer or his product. For example, he may not be happy with the commission he gets on the product or he may dislike the product personally. Owing to these reasons he may be bias towards them and not promote their sales.

Correct option is (A) Sold at cheaper price

Fixed shops can be classified as below:
(A) Big shops:

• Departmental stores
• Chain stores
• Mail order stores
• Franchise
• Super market
• Shopping mall

Mobile shops:

Goods sold by moving from one place to another on foot, carts, temporary stalls, bicycles, van, etc. are called mobile shops.

Mobile shops can be classified as follows:
(A) Hawkers:

• A person who moves from one place to another and sells his goods mainly by shouting and promoting is called a hawker. For example, fruit and vegetable seller. Hawkers sell goods on roads, near our homes, railway station, bus station, etc.
• They sell goods like fruits and vegetables, newspapers and magazines, small home utility items like plastic ware, etc.
• Hawkers sell things at prices lower than shops because their expenses are quite less than shop-owners.

(B) Temporary trader:

• People selling goods only during specific period, festival, occasion or season of the year are called temporary traders.
• For example, people selling goods in fairs and exhibitions, people selling kite and string in uttrayan, crackers during diwali, rain coat and umbrella during monsoon, woollen clothes in winter, etc. are all called temporary traders.
• Such traders may be hawkers or even shop owners but their selling period would be temporary.

(C) Fixed-day traders:

• In some cities, towns or villages a market is set-up at a certain place on a fixed day of every week or month. Sellers who bring their goods to sell in such a market are called fixed-day traders. These markets operate whole day or even night on the day they are organized.
• Such markets are called flea markets, Gujari or Hat. For example, one such Gujari market in set-up every Sunday near Ellis Bridge in Ahmedabad.

(D) Street sellers:

Street-sellers sell daily utility goods to customers on the corner of streets, foot-paths, cross-roads, pols, etc. to people living around. Example, vegetable and fruit seller.

(i) Mail order shops :

• A method of trading where in buying and selling of goods takes place through mails without coming in direct contact is called mail order trading. The owners of such businesses are called owners of mail order shops or direct mail shops.
• In mail order form of retail selling the sellers gather database of name, address and e-mails of prospective customers from market. Then they send their product catalogue to these people either through e-mail or post. After studying the catalogue if people like the product they contact seller and place the order on telephone or through website.
• The sellers deliver the items to the buyers at their address and receives money either in cash i.e. COD or through VPP, etc.
• The biggest advantage of mail shops is that goods can be sold and sent to any person residing at any part of the country.
• Mail shops generally sell limited products that are light weight, durable and high priced.
• Thus, mail order shops do the entire business from advertising to delivery and sending payment receipts through mail.

Malls are the chain of shops and showrooms dealing in a variety of goods, owned by different owners, and located at one place in a large building. 

A limited number of goods that are light weight, durable, costly and non-perishable.

Correct option is (A) Wholesaler

Correct option is (C) Perishable

Building infrastructure of departmental store and maintaining it is a costly affair. High cost is incurred on making departments, refrigeration and air-conditioning, lightening, salaries, etc.

Retail trade:

• A trader who purchase goods in small quantity from wholesaler or in some cases from producer and sells them directly to the customers is called retailer and the trade is called retail trade.
• The retailer comes in direct contact with customers. So, he understands their needs, preferences and mind sets better. He can also provide them personalized services, help to solve their complaints quickly via. wholesalers and hence works as a link between wholesaler and customers.

Services that retailers provide to wholesalers and producers:
1. Information about market:
Retailer is always in direct contact with customers. He understands their demands, preferences and mindsets. So, he can share customer’s views with wholesalers and producers and provide them rich information about the features that customers seek in a product.

2. Helps in advertising:
Producers and wholesalers can print advertisement displays boards, pamphlets, posters, etc. and ask the retailers to put these in their shops. This way retailers help in advertising the products.

3. Increase creditability:
Good retailers tend to buy goods and promote good products, provide good service for those products and make customers happy. This also increases the creditability of retailers i.e. customers, wholesalers and producers all find them trustworthy. This overall enhances the product experience for customers and the sale increases.

Larges hopes are large-sized fixed shops established with large amount of capital. They are located in important places and markets of towns and cities.

Correct option is (B) Furniture

Correct option is (B) Hawkers

The difference between small fixed shops and large fixed shops;

Wholesalers provide a variety of information to both manufacturers and customers. 

To manufacturers, they provide information about: 

1. The tastes and preferences of customers 

2. Conditions prevailing in the market 

3. Level of competition in the market and 

4. Types of goods and features demanded by consumers. This information helps manufacturers to cater to the changing needs of consumers.

Correct option is (D) Delicate

To Retailers 

1. The retailers are relieved of maintaining huge stock of goods because the wholesaler fills up the stock regularly. The wholesaler buys in large quantities and sell them at convenient lots to the retailers. 

2. The wholesaler provides finance and credit facilities to the retailer and thereby relieves the financial difficulties of the retailer. 

3. The wholesaler saves retailers from many types of risks. The retailer is not required to carry huge stock as he can get them from the wholesaler at regular interval. By extending credit has saved the retailers a lot. 

4. The wholesaler provides valuable advices to the retailer on all matters relating to new product and market condition and thereby relieves him from collection of market data. 

5. The wholesaler gives trade discounts on bulk purchase and as such it enables the retailers to earn handful amount of profit.

To Consumer 

1. He enables the consumer to purchase required quantities of goods at the desired time because he supplies goods regularly to the retailers. 

2. He provides goods at a cheaper rate because he facilitates in large scale production. 

3. The wholesaler is in a better position to stabilize prices of the products by adjusting demand and supply. The consumers are benefitted a lot on account of stabilization of prices. 

4. There is no shortage of goods as the wholesaler goes on large purchasing.

Correct option is (B) Gujari trader

Super market is nothing but a retail organization providing food and household articles to consumer under one roof without any kind of sales pressure from salesmen and sale assistants. The United States of America (USA) is said to be the homeland .of super markets. In India, Apna Bazaar, Sahakari Bhandar, etc., are some good examples of super markets or super bazaars. According to Dictionary of Business and Finance, Supermarket is defined as, “Large store selling a wide variety of consumer goods, particularly food and small articles of household requirements.” Features of Super market 

The characteristics or features of the super market are as follows:

1. Centrally located in big premises: Super markets are normally opened in a central locality where ample space is available. It is housed in big premises. Without such premises proper display of different goods cannot be arranged. 

2. No sales pressure: One important feature of a super market is self-service. There is a complete absence of salesmen and sales assistants. Thus, there is no sales pressure of any kind. Customers can make a selection according to their needs and desires. 

3. Maintains low prices: The prices of goods in the super markets are reasonable or low. This is because they (companies running super markets) buy in bulk and enjoy all the advantages of bulk buying. Similarly, their salary bill is low due to the absence of salesmen and sales assistants. 

4. Sell goods on a cash basis: Super markets sell goods on ‘Cash and carry basis In such a kind of a business, credit facilities are usually not offered. This reduces bad debts. 

5. Deals in necessaries of life: Super market deals in commodities, which are required regularly. Thus, they deal in tinned products of well-known brands, groceries and provision, ready made garments, fruits, etc. The turn over is quick as the demand for the necessaries of life is a continuous one. 

6. Established by companies: Super markets are retailing shops, which are large in size. They do business on a large scale and require huge financial resources. Hence, they are normally established by Joint-stock companies. 

7. Deals in pre-packed goods: Super market normally deals in pre-packed goods or products. It uses latest and up-to-date packing material to protect quality and quantity. On all packages, prices, weights, particulars of goods, grade and quality are specified. 

8. Needs huge capital to operate: Super market is a large retail trading organization. It requires a substantial amount of capital for big premises, huge warehousing, ample parking and stocking of a wide variety of commodities.

9. Self-service store: Customers are given attractive trolleys or hand baskets or bags for keeping goods which they want to buy. Goods are systematically arranged and beautifully displayed. Customers select these goods and keep them in the trolley. Finally, they have to come to the billing section for making payment and then delivery is given at the delivery counter.

Advantages of Super Market

• Saving in labour cost due to self-service system.
• Super market has large turn over.
• Reasonable or low prices of goods.
• Low cost of operation.
• Freedom of selection.
• Shopping is very easy and quick.
• Due to adequate parking space, shopping becomes easy and pleasing activity rather than boredom.
• High degree of efficiency due to elimination of service.
• High margin of profit to organisers.

• Advantages of large scale operations.

Disadvantages of Super Market

The disadvantages of a super market or Super Bazaar are as follows:

• Super market requires huge financial resources.
• It is normally situated at a long distance from the residential localities. 
• There is lack of personal attention.
• Super market does not provide various services such as free home delivery, personal guidance, credit facility and after sale service.
• It faces the problem of co-ordinating activities of various sections of the market. 
• It requires large and extensive premises.
• Goods which require explanation by salesmen cannot be sold in such markets.

Mail order business is a type of retail trade where orders for the supply of goods are received from customers through mail and goods are dispatched through mail. The goods are supplied either by registered parcel or V.P.P. For this type of business, seller advertises in the leading dailies and magazines and desires the buyers to ask for quotation or price list from the seller. Mail order business has been described as shopping by post from the point of view of buyers and selling by post from the point of view of sellers. This form of retail trade has received wider application in USA and Canada. The leading mail order houses are Montgomery Ward Company, Sears Roebuck and Co. of USA. There are various types of mail order houses like general mail order houses, specialty mail order house, producer’s mail order house, wholesaler’s mail order house and middlemen type mail order. In this trade, there is no direct contact between the seller and the buyer. The main advantages of mail-order business are given below: 

1. This type of business can be started with a small amount of capital and involve less risks in comparison to other types of business houses. 

2. Consumers staying at a distant place are benefitted by this method of sale. 

3. There is no fear of bad debt as this business does not facilitate credit sale. 

4. This business facilitates a country wide market and thereby results in market and operational economies

Correct option is (D) Both (A) and (C)