Page 10 - DMGT550_RETAIL_MANAGEMENT

Unit 1: Introduction to Retailing

at home because they can easily access more from the nearby retailers. Retailer’s inventory Notes
allows customers instant availability of the products and services.

7. Channel of Communication: Retailers are the bridge between the manufacturer or his
representative and the end customers. They serve as a two-way channel of communication.
The manufacturer collects customer choice and preference data and provides information
about existing and new products through the retailers. The point of purchase displays
provide serve as advertisements that provide information about new products and many
times retailers inform the consumers about likely date of availability of a product or entry
of variants into the market. The shoppers get a chance to learn about products and services
from the stores and even acquire trial habits by seeing others buying a product or service
in the store. The manufacturer too collects customer data, data on gaps in demand and
supply cycles and customer satisfaction from retail points.
8. Transportation: Retailers also help in transport and advertising function. The larger
assortments are transported from wholesaler’s point to retailers point by retailer’s own
arrangements and many times, the retailer delivers the goods at final consumer’s point.
So, retailers provide assistance in storage, transportation and prepayment merchandise.
The percentage that a retailer gets from the sale price depends on the number of functions that
the retailer does for the manufacturer.

Task Visit your nearby retailers and find out what all activities do they perform to
enrich customer service.

Self Assessment

Fill in the blanks:
4. Retail offers an ......................... that enables customers to choose from a wide selection of
brands, designs, sizes, colors, and prices in one location.
5. Under ......................... process, the retailer undertakes activities and performs functions
that add value to the products and services while selling them to consumers.
6. Retailer’s ......................... allows customers instant availability of the products and services.

1.3 Social and Economic Significance of Retailing

The social and economic significance of retailing is explained under the following heads.

Social Responsibility

Retailers are socially responsible businesses. Corporate social responsibility describes the
voluntary actions taken by a company to address the ethical, social, and environmental impacts
of its business operations and the concerns of its stakeholders. Retailing figure 1.1 illustrates
how retailers provide value to their communities and society, as well as to their customers.

Retail Sales
Retailing affects every facet of life. Just think of how many daily contacts you have with retailers
when you eat meals, furnish your apartment, have your car fixed, and buy clothing for a party

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