Kerala Plus One Business Studies Chapter Wise Previous Questions Chapter 10 Internal Trade
Question 1.
He is the last link in the distribution channel. He sells goods in small quantities. Who is this trader? (June – 2008)
Answer:
Retailer
Question 2.
“Absence of salesmen is one of the most important features of this shop”. Identify the shop and state its features. (March – 2009)
Answer:
Supermarket
Wholesale Trade:- Wholesale trade means buying goods in large quantities from the producers and selling them in smaller quantities to the retailers. Wholesalers act as an important link between manufacturers and retailers.
Functions of Wholesaler
1. Buying and assembling:- The wholesalers buy goods from different producers and keep them in a central place.
2. Warehousing:- The goods are to be kept in the I warehouses till they are sold to retailers.
3. Grading and packing:- The goods purchased are sorted out on the basis of quality and size. This is called grading. After grading they are packed in attractive packages
4. Pricing:- The wholesaler fix the price of products
5. Transportation:- The wholesalers move the goods from the production center to the retail shop
6. Risk bearing:- They assume the risk like change in demand, spoilage, theft during transportation, etc.
7. Financing:- Wholesalers purchase goods on a cash basis from manufacturers and sell them to the retailers on a credit basis.
8. Market information:- Wholesalers collect various market information for the benefits of manufacturers so that they can change the products accordingly
Services of Wholesalers to Manufacturers:
1. Facilitating large-scale production:- As the wholesalers place bulk orders, the producers are able to undertake production on a large scale and take advantage of economies of scale.
2. Risk bearing: Wholesaler deals in goods in their own name and bear a variety of risks such as the risk of fall in prices, theft, pilferage spoilage, fire, etc.
3. Financial assistance: Wholesalers provide financial assistance to the manufacturers by making cash payment for the purchased goods.
4. Expert advice: Wholesalers provide various useful information regarding customer preference, market conditions, etc to the manufacturer.
5. Help in marketing function: As the wholesalers place bulk orders, it relieves the producer from many marketing activities and he can concentrate on production.
6. Storage facilities:-Wholesalers hold the goods in their own warehouses. It reduces the burden of storage of goods by the manufacturers.
7. Facilitate production continuity:- The wholesalers facilitate continuity of production activity throughout the year by purchasing the goods as and when these are produced
Services of Wholesalers to Retailers
1. Availability of goods: The wholesalers make the products of various manufacturers readily available to the retailers.
2. Marketing support: They undertake advertisements and other sales promotional activities to induce customers to purchase the goods.
3. Grant of credit: The wholesalers generally provide credit facilities to the retailers.
4. Specialised knowledge: Wholesalers know the pulse of the market. They inform the retailers about the new products, their uses, quality, prices, etc.
5. Risk sharing: Wholesalers sell goods to retailers in small quantities and thus retailers do not face the risk of storage, pilferage, reduction in prices, etc.
Question 3.
Which of the following persons help the customer in taking the right buying decision? (August – 2009)
a) Manufacturer
b) Wholesaler
c) Retailer
d) Commission agent
Answer:
Retailer
Question 4.
He is the last link in the distribution channel of internal trade (August – 2009)
a) identify the above dignitary
b) also state any two functions of him
Answer:
a) Retailer
b) Retail Trade
Buying of goods in large quantities from the wholesalers and selling them in small quantities to the ultimate consumers is known as retail trade. Retailers serve as an important link between the producers and consumers in the distribution of products and services.
Functions of Retailers
- A retailer collects different varieties of goods. So he can satisfy different types of customers.
- A retailer provides market information to wholesalers and manufacturers.
- A retailer is in close contact with consumers. So he can persuade the consumers to buy the product.
- Retailers locate their business in residential areas. It helps the consumers to purchase the product easily.
- The retailers provide credit facilities to the consumers.
- Retailers provide after-sales services to attract consumers.
Services of Retailers to Manufacturers and Wholesalers
- Retailers help manufacturers & wholesalers in the distribution of their goods & services to the ultimate consumers.
- Retailers undertake personal selling efforts and thus, help manufacturers and wholesalers to increase the sale of the products.
- Retailers help manufacturers and wholesalers to operate production on a large scale by undertaking the distribution of goods.
- As retailers are in constant touch with customers, they can provide various market information such as the tastes, preferences, and attitudes, etc. of consumers to the producers.
- Retailers participate in various sales promotional activities conducted by producers and wholesalers.
Services Retailers to Consumers
- Retailers provide goods to consumers according to their requirements.
- Retailers keep large varieties of products from different manufacturers. It enables customers to select goods according to their choice.
- Retailers provide important information about the new products to the consumers.
- Retailers also provide after-sales services in the form of home delivery etc. to the customers.
- Retailers often supply goods on credit to the customers.
- Retailers keep ready stock of the products needed by the consumers.
Question 5.
It is a form of retail trading in which goods are ordered and distributed through post or mail and payment is also made through the mail. (August – 2009)
a) Can you name this form of retail trade?
b) Also mention any three limitations of this form of retail trading.
Answer:
a) Mail Order Business
b) The limitations of mail-order business are:-
- There is no direct personal contact between the buyer and seller.
- The buyer cannot inspect personally the goods before purchasing
- Only limited types of goods can be sold through a mail-order business.
- The absence of credit facilities will not attract people.
- Customers may not get the goods in time.
Question 6.
Radhakrishna Reddy, a textile owner in Kollam, purchased bulk quantities of goods from a textile mill at Ahmedabad. (March – 2011)
a) State the nature of trade between them.
b) Write any three features of such trade.
Answer:
Wholesale Trade Features of Wholesale Trade
1) Buying and assembling:- The wholesalers buy goods from different producers and keep them in a central place.
2) Warehousing:- The goods are to be kept in the warehouses till they are sold to retailers.
3) Pricing:- The wholesaler fixes the price of products.
Question 7.
It is a form of retail trading that originated in the USA. In this form, the business transactions are done through post or mail. (March – 2011)
a) Identify the form or retail trade.
b) Point out any two limitations of this form of trading.
Answer:
a) Mail Order Business
b) Disadvantages of mail-order business
1) It has to spend a large amount of an advertisement.
2) There is no direct personal contact between the buyer and the seller.
3) The buyer cannot inspect the goods personally before purchasing.
Question 8.
The type of retail trade upon advertisement is: (March-2012)
a) Departmental store
c) Multiple shops
Answer:
Mail Order Business
Question 9.
Every morning, a three-wheeled vehicle appears in front of your house selling vegetables to the households. (March-2012)
a) Identify the type of retailer referred to here.
b) Mention any two characteristics of this retailer,
Answer:
a) Hawkers.
b) 1. They deal with cheap and light articles like vegetables, fruits, toys, etc.
2. They carry their products in wheeled carts
Question 10.
“Wholesalers are unnecessary in the present distribution system. Their elimination would be beneficial to the society”. Do you agree with this statement? Discuss in the light of modern trends in marketing. (March-2012)
Answer:
No. We cannot eliminate the services of wholesalers. They offer various services to manufacturers and Retailers.
Wholesale Trade:- Wholesale trade means buying goods in large quantities from the producers and selling them in smaller quantities to the retailers. Wholesalers act as an important link between manufacturers and retailers.
Functions of Wholesaler
1. Buying and assembling:- The wholesalers buy goods from different producers and keep them in a central place.
2. Warehousing:- The goods are to be kept in the I warehouses till they are sold to retailers.
3. Grading and packing:- The goods purchased are sorted out on the basis of quality and size. This is called grading. After grading they are packed in attractive packages
4. Pricing:- The wholesaler fix the price of products
5. Transportation:- The wholesalers move the goods from the production center to the retail shop
6. Risk bearing:- They assume the risk like change in demand, spoilage, theft during transportation, etc.
7. Financing:- Wholesalers purchase goods on a cash basis from manufacturers and sell them to the retailers on a credit basis.
8. Market information:- Wholesalers collect various market information for the benefits of manufacturers so that they can change the products accordingly
Services of Wholesalers to Manufacturers:
1. Facilitating large-scale production:- As the wholesalers place bulk orders, the producers are able to undertake production on a large scale and take advantage of economies of scale.
2. Risk bearing: Wholesaler deals in goods in their own name and bear a variety of risks such as the risk of fall in prices, theft, pilferage spoilage, fire, etc.
3. Financial assistance: Wholesalers provide financial assistance to the manufacturers by making cash payment for the purchased goods.
4. Expert advice: Wholesalers provide various useful information regarding customer preference, market conditions, etc to the manufacturer.
5. Help in marketing function: As the wholesalers place bulk orders, it relieves the producer from many marketing activities and he can concentrate on production.
6. Storage facilities:-Wholesalers hold the goods in their own warehouses. It reduces the burden of storage of goods by the manufacturers.
7. Facilitate production continuity:- The wholesalers facilitate continuity of production activity throughout the year by purchasing the goods as and when these are produced
Services of Wholesalers to Retailers
1. Availability of goods: The wholesalers make the products of various manufacturers readily available to the retailers.
2. Marketing support: They undertake advertisements and other sales promotional activities to induce customers to purchase the goods.
3. Grant of credit: The wholesalers generally provide credit facilities to the retailers.
4. Specialised knowledge: Wholesalers know the pulse of the market. They inform the retailers about the new products, their uses, quality, prices, etc.
5. Risk sharing: Wholesalers sell goods to retailers in small quantities and thus retailers do not face the risk of storage, pilferage, reduction in prices, etc.
Question 11.
Which of the following is not a part of an export document? (March-2013)
a) Commercial invoice
b) Certificate of origin
c) Bill of entry
d) Bill of lading
Answer:
Bill of entry
Question 12.
Mr. Benjamin displays a lot of magazines on a busy street corner near the railway station. Identify the type of retailer referred to here. Mention any two characteristics of this retailer, aorolrotem (March-2013)
Answer:
Street Traders. Features of street traders are
a) They deal in the low priced product of common use
b) They generally arranged their products at busy street corners.
Question 13.
“Absence of salesman is one of the most important features of this shop”. Explain the type of retail business. (September -2013)
Answer:
1. They are located at the center of a town.
2. They sell goods on a cash basis only.
3. They deal with a wide variety of goods.
4. There is no salesman to help consumers
Question 14.
Ashoka Agencies sell goods directly to consumers by avoiding middlemen. (September -2013)
a) Identify the type of business.
b) Briefly explain the different forms of this business.
Answer:
a) Direct marketing.
b) Direct mail, Catalogue retailing, Tele marketing
Question 15.
The absence of salesmen is an important feature of this shop. Identify this shop. (March-2014)
Answer:
Super Market (Super Bazaar)
Question 16.
A commerce teacher, while going through the topic, “Internal Trade”, Cites the examples of ‘Bata Shoe Company’, having its headquarters in Mumbai where it has its showrooms at different locations of the city as well as in various cities all over India. The products of the company carry the same price in all these showrooms. (March-2014)
a) Identify the type of shop cited in the example.
b) List any five features of such shops.
Answer:
Multiple shops is a system of branch shops operated under centralized management and dealing in a similar line of goods. Branches are located throughout the nation.
Features of multiple shops
- It deals in one or two lines of products.
- All branches are dealing in similar goods
- It has centralized management and a unified system of control
- It eliminates middlemen.
- It works on cash and carries the principle
- It has centralized buying and decentralized selling.
- There is uniformity in operation in all branches.
- It deals with goods of daily use and durables.
Question 17.
The traders who carry the products on wheeled carts or bicycles are called : (August-2014)
Answer:
Hawkers
Question 18.
Explain the services provided by wholesalers to the manufacturers. (August-2014)
Answer:
Wholesale Trade:- Wholesale trade means buying goods in large quantities from the producers and selling them in smaller quantities to the retailers. Wholesalers act as an important link between manufacturers and retailers.
Functions of Wholesaler
1. Buying and assembling:- The wholesalers buy goods from different producers and keep them in a central place.
2. Warehousing:- The goods are to be kept in the I warehouses till they are sold to retailers.
3. Grading and packing:- The goods purchased are sorted out on the basis of quality and size. This is called grading. After grading they are packed in attractive packages
4. Pricing:- The wholesaler fix the price of products
5. Transportation:- The wholesalers move the goods from the production center to the retail shop
6. Risk bearing:- They assume the risk like change in demand, spoilage, theft during transportation, etc.
7. Financing:- Wholesalers purchase goods on a cash basis from manufacturers and sell them to the retailers on a credit basis.
8. Market information:- Wholesalers collect various market information for the benefits of manufacturers so that they can change the products accordingly
Services of Wholesalers to Manufacturers:
1. Facilitating large-scale production:- As the wholesalers place bulk orders, the producers are able to undertake production on a large scale and take advantage of economies of scale.
2. Risk bearing: Wholesaler deals in goods in their own name and bear a variety of risks such as the risk of fall in prices, theft, pilferage spoilage, fire, etc.
3. Financial assistance: Wholesalers provide financial assistance to the manufacturers by making cash payment for the purchased goods.
4. Expert advice: Wholesalers provide various useful information regarding customer preference, market conditions, etc to the manufacturer.
5. Help in marketing function: As the wholesalers place bulk orders, it relieves the producer from many marketing activities and he can concentrate on production.
6. Storage facilities:-Wholesalers hold the goods in their own warehouses. It reduces the burden of storage of goods by the manufacturers.
7. Facilitate production continuity:- The wholesalers facilitate continuity of production activity throughout the year by purchasing the goods as and when these are produced
Services of Wholesalers to Retailers
1. Availability of goods: The wholesalers make the products of various manufacturers readily available to the retailers.
2. Marketing support: They undertake advertisements and other sales promotional activities to induce customers to purchase the goods.
3. Grant of credit: The wholesalers generally provide credit facilities to the retailers.
4. Specialised knowledge: Wholesalers know the pulse of the market. They inform the retailers about the new products, their uses, quality, prices, etc.
5. Risk sharing: Wholesalers sell goods to retailers in small quantities and thus retailers do not face the risk of storage, pilferage, reduction in prices, etc.
Question 19.
The departmental undertaking is the oldest and most traditional form of organizing public sector enterprises. List any two features of it. (August-2014)
Answer:
1) The enterprise is financed by an annual appropriation from the budget of the Government and all revenue is paid to the treasury.
2) The enterprise is subject to accounting and audit control
Question 20.
Balan is running a retail shop in Kozhikode town. He provides various useful services to manufacturers, wholesalers, and consumers. Explain the services that Mr. Balan provides to the various mentioned parties. (August-2014)
Answer:
b) Retail Trade
Buying goods in large quantities from the wholesalers and selling them in small quantities to the ultimate consumers is known as retail trade. Retailers serve as an important link between the producers and consumers in the distribution of products and services.
Functions of Retailers
- A retailer collects different varieties of goods. So he can satisfy different types of customers.
- A retailer provides market information to wholesalers and manufacturers.
- A retailer is in close contact with consumers. So he can persuade the consumers to buy the product.
- Retailers locate their business in residential areas. It helps the consumers to purchase the product easily.
- The retailers provide credit facilities to the consumers.
- Retailers provide after-sales services to attract consumers.
Services of Retailers to Manufacturers and Wholesalers
- Retailers help manufacturers & wholesalers in the distribution of their goods & services to the ultimate consumers.
- Retailers undertake personal selling efforts and thus, help manufacturers and wholesalers to increase the sale of the products.
- Retailers help manufacturers and wholesalers to operate production on a large scale by undertaking the distribution of goods.
- As retailers are in constant touch with customers, they can provide various market information such as the tastes, preferences, and attitudes, etc. of consumers to the producers.
- Retailers participate in various sales promotional activities conducted by producers and wholesalers.
Services Retailers to Consumers
1. Retailers provide goods to consumers according to their requirements.
2. Retailers keep large varieties of products of different manufacturers. It enables customers to select goods according to their choice.
3. Retailers provide important information about the new products to the consumers.
4. Retailers also provide after-sales services in the form of home delivery etc. to the customers.
5. Retailers often supply goods on credit to customers.
6. Retailers keep ready stock of the products needed by the consumers.
Question 21.
The type of retail trade which is totally dependent on advertisement is… (Say – 2015)
a) departmental store
c) multiple shops
Answer:
Mail-order business
Question 22.
These persons purchase goods in bulk and sell in small lots to retailers. Identify the persons and explain their services to manufacturers and retailers. (Say -2015)
Answer:
a) Wholesalers
b) Services of Wholesalers to Manufacturers:
1. Facilitating large-scale production:- As the wholesalers place bulk orders, the producers are able to undertake production on a large scale and take advantage of economies of scale.
2. Risk bearing: Wholesaler deals in goods in their own name and bear a variety of risks such as the risk of fall in prices, theft, pilferage spoilage, fire, etc.
3. Financial assistance: Wholesalers provide financial assistance to the manufacturers by making cash payment for the purchased goods.
4. Expert advice: Wholesalers provide various useful information regarding customer preference, market conditions, etc to the manufacturer.
5. Help in marketing function: As the wholesalers place bulk orders, it relieves the producer from many marketing activities and he can concentrate on production.
6. Storage facilities:- Wholesalers hold the goods in their own warehouses. It reduces the burden of storage of goods by the manufacturers.
7. Facilitate production continuity:- The wholesalers facilitate continuity of production activity throughout the year by purchasing the goods as and when these are produced
Services of Wholesalers to Retailers
1. Availability of goods: The wholesalers make the products of various manufacturers readily available to the retailers.
2. Marketing support: They undertake advertisements and other sales promotional activities to induce customers to purchase the goods.
3. Grant of credit: The wholesalers generally provide credit facilities to the retailers.
4. Specialised knowledge: Wholesalers know the pulse of the market. They inform the retailers about the new products, their uses, quality, prices, etc.
5. Risk sharing: Wholesalers sell goods to retailers in small quantities and thus retailers do not face the risk of storage, pilferage, reduction in prices, etc.
Question 23.
“Absence of salesman is one of the most important features of this shop.”(Say -2015)
a) Identify the shop.
b) Explain its merits and demerits.
Answer:
a) Super Market
b) Wholesale Trade:- Wholesale trade means buying goods in large quantities from the producers and selling them in smaller quantities to the retailers. Wholesalers act as an important link between manufacturers and retailers.
Functions of Wholesaler
1. Buying and assembling:- The wholesalers buy goods from different producers and keep them in a central place.
2. Warehousing:- The goods are to be kept in the I warehouses till they are sold to retailers.
3. Grading and packing:- The goods purchased are sorted out on the basis of quality and size. This is called grading. After grading they are packed in attractive packages
4. Pricing:- The wholesaler fix the price of products
5. Transportation:- The wholesalers move the goods from the production center to the retail shop
6. Risk bearing:- They assume the risk like change in demand, spoilage, theft during transportation, etc.
7. Financing:- Wholesalers purchase goods on a cash basis from manufacturers and sell them to the retailers on a credit basis.
8. Market information:- Wholesalers collect various market information for the benefits of manufacturers so that they can change the products accordingly
Services of Wholesalers to Manufacturers:
1. Facilitating large-scale production:- As the wholesalers place bulk orders, the producers are able to undertake production on a large scale and take advantage of economies of scale.
2. Risk bearing: Wholesaler deals in goods in their own name and bear a variety of risks such as the risk of fall in prices, theft, pilferage spoilage, fire, etc.
3. Financial assistance: Wholesalers provide financial assistance to the manufacturers by making cash payment for the purchased goods.
4. Expert advice: Wholesalers provide various useful information regarding customer preference, market conditions, etc to the manufacturer.
5. Help in marketing function: As the wholesalers place bulk orders, it relieves the producer from many marketing activities and he can concentrate on production.
6. Storage facilities:-Wholesalers hold the goods in their own warehouses. It reduces the burden of storage of goods by the manufacturers.
7. Facilitate production continuity:- The wholesalers facilitate continuity of production activity throughout the year by purchasing the goods as and when these are produced
Services of Wholesalers to Retailers
1. Availability of goods: The wholesalers make the products of various manufacturers readily available to the retailers.
2. Marketing support: They undertake advertisements and other sales promotional activities to induce customers to purchase the goods.
3. Grant of credit: The wholesalers generally provide credit facilities to the retailers.
4. Specialised knowledge: Wholesalers know the pulse of the market. They inform the retailers about the new products, their uses, quality, prices, etc.
5. Risk sharing: Wholesalers sell goods to retailers in small quantities and thus retailers do not face the risk of storage, pilferage, reduction in prices, etc.
Question 24.
A petty retailer having temporary independent shops keeps on changing from one place to another is (March – 2016)
a) pedlars
b) cheap jacks
c) hawkers
d) all of these
Answer:
Cheap jacks
Question 25.
These are the retail shops that normally dealt in standardized consumer products through a network of shops with a similar appearance. Name it. Write any four advantages of this type of retail shop. (March – 2016)
Answer:
Chain store or multiple shops.
Advantages
- It enjoys economies of bulk purchase because the goods for all branches are purchased by head office.
- There is no risk of bad debts because all sales are on a cash basis.
- The advertisements for all branches are done by the head office. So there is an economy in the advertisement.
- Multiple shops are located in towns and cities. They attract a large number of customers.
Question 26.
For buying and selling of goods within the boundaries of a country mainly two intermediaries are involved, Write two services each provided by these intermediaries to the producer. (March – 2016)
Answer:
Services of wholesalers to producers
- As the wholesalers place bulk orders, the producers are able to undertake production on a large scale.
- Wholesalers provide financial assistance to the manufactures by making cash payments for the purchased goods.
Services of Retailers to Producers
- Retailers help manufactures in the distribution of their goods to ultimate consumers.
- Retailers help manufactures to operate production on a large scale by undertaking the distribution of goods
- Retailers can provide various market information to producers.
Question 27.
These types of retailers have no fixed place for business. They frequently move from one place to another. Explain the types of such retailers. (September-2016)
Answer:
Itinerant Retailers: The retailers who do not have a fixed place of business to operate from are called itinerant retailers. They have to move from one place to another along with their goods in search of consumers.
Itinerant Retailers: The retailers who do not have a fixed place of business to operate from are called itinerant retailers. They have to move from one place to another along with their goods in search of consumers.
Characteristics of itinerant retailers.
- They are small traders having limited resources.
- They generally deal in consumer products of daily use.
- They emphasize providing greater customer services.
- They do not have any fixed place to operate from.
Types of itinerant retailers
1. Peddlers and hawkers: They cany the products on a bicycle, a hand cart, a cycle-rickshaw, or on their heads, and move from place to place to sell their products at the doorstep of the customers. They generally deal with non-standardized and low-value products such as toys, vegetables, fruits, etc.
2. Market traders: They are small retailers who open their shops at different places and sell the goods on fixed days such as every Saturday or Tuesday. These trader deals in a single line of goods such as toys, readymade garment crockery, etc.
3. Street traders: These traders display their articles on busy streets, bus stand, railway stations, etc. They sell low-priced articles like pens, books, magazines, handkerchiefs, etc. They do not change their place of business frequently.
4. Cheap jacks: They are small retailers who have independent shops of a temporary nature in a business locality. They keep on changing their business from one locality to another but not very frequently. They deal in consumer items such as repair of watches, shoes, buckets, etc.
2. Fixed Shop Retailers: Retailers who maintain permanent establishments to sell their goods are called fixed shop retailers. Following are the main characteristics of fixed shop retailers:
1. They have greater resources and operate on a relatively large scale.
2. They deal in durable as well as non-durable goods.
3. They provide greater services to the customers such as home delivery, repairs, credit facilities, etc.
Types of Fixed Shop Retailers
The fixed-shop retailers can be classified into two. They are:-
- Small shop-keepers
- Large retailers
Question 28.
In this type of retail business, a number of shops with similar appearance are established in localities spread over different parts of the country. (September-2016)
a) Identify the type of retail shop.
b) State any four advantages.
Answer:
a) Multiple shops or Chain stores
b) Multiple shops is a system of branch shops operated under centralized management and dealing in a similar line of goods. Branches are located throughout the nation.
Advantages
- It enjoys economies of bulk purchase because the goods for all branches are purchased by head office.
- There is no risk of bad debts because all sales are on a cash basis.
- The advertisements for all branches are done by the head office. So there is an economy in the advertisement.
- All branches of multiple shops are uniform in style, design, and display of goods.
Question 29.
…………. is the link between wholesaler and customer. (March-2017)
a) Manufacturer
b) Supplier
c) Retailer
d) None of these.
Question 30.
Itinerant traders have been an integral part of internal trade in India. Explain the different types of such itinerant traders found in India. (August-2014)
Answer:
Itinerant Retailers: The retailers who do not have a fixed place of business to operate from are called itinerant retailers. They have to move from one place to another along with their goods in search of consumers.
Characteristics of itinerant retailers.
- They are small traders having limited resources.
- They generally deal in consumer products of daily use.
- They emphasize providing greater customer services.
- They do not have any fixed place to operate from.
Types of itinerant retailers
1. Peddlers and hawkers: They cany the products on a bicycle, a hand cart, a cycle-rickshaw, or on their heads, and move from place to place to sell their products at the doorstep of the customers. They generally deal in non-standardized and low-value products such as toys, vegetables, fruits, etc.
2. Market traders: They are a small retailer who opens their shops at different places and sell the goods on fixed days such as every Saturday or Tuesday. These trader deals in a single line of goods such as toys, readymade garment crockery, etc.
3. Street traders: These traders display their articles on busy streets, bus stand, railway stations, etc. They sell low-priced articles like pens, books, magazines, handkerchiefs, etc. They do not change their place of business frequently.
4. Cheap jacks: They are small retailers who have independent shops of a temporary nature in a business locality. They keep on changing their business from one locality to another but not very frequently. They deal in consumer items such as repair of watches, shoes, buckets, etc.
2. Fixed Shop Retailers: Retailers who maintain permanent establishments to sell their goods are called fixed shop retailers. Following are the main characteristics of fixed shop retailers:
1. They have greater resources and operate on a relatively large scale.
2. They deal in durable as well as non-durable goods.
3. They provide greater services to the customers such as home delivery, repairs, credit facilities, etc.
Types of Fixed Shop Retailers
The fixed-shop retailers can be classified into two. They are:-
- Small shop-keepers
- Large retailers