Just ANswer the Number 3!
Here is the answer for the number 1.
Retailing is the process of part of the supply chain management in which a retailer deals or interacts directly with the customers. In retailing there can be a brick and mortar store or an online store through which the products and services can be offered to the customers.
Retailing business has some major benefits which are as follows -
- Convenience for customers in terms of time, place, stocks, etc.
- Encourages impulsive purchases
- More secure than online shopping
- Greater sales potential
- Promotes competitive environment
Deciding retail prices
A retailer such as a grocer feels entitled to decide on the retail price of the products he sells rather than obey a supplier's SRPS as a retailer bears expenses and efforts in the form of capital, manpower, time and energy which sometimes is not justified in the margin given by the company or in the SRPS. A retailer is the last chain in supply management and he has a great idea about the worth of the product in the market and to the customers and keeping all the factors in the mind he is best able to decide and judge the price of the products he or she is dealing in.
Here is the answer for the Number 2.
The retailers sell final goods to the end customers to fulfil their personal needs and offer goods for tehri personal use. The retailers sell goods in individual quantities to individual customers and only operated in the consumer market.
Some of the ways or points through which a manufacturer or seller can motivate retailers to sell their products only at Seller's Retail Price are listed under.
- The seller can inform the retailers that they can reduce the retail competition among other local retailers if they sell the products at the seller's retail price because if they sell at a higher price, the customers might shift to other retailers in the area.
- The seller can also convince the retailer to sell products at the seller's retail price by telling him that he will be able to eliminate free-riding which other retailers would enjoy without doing any extra efforts just because this retailer sells at a higher price.
- The seller can also do so by telling the retailer that he should sell the products at the SRP but in order to earn higher profits, he can offer to give complimentary services to customers which will also add to his distinction among other retailers.
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