Professional Documents
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164 181
164 181
for their personal consumption. In retail sale, the buyer is the ultimate consumer, rather than a
purchaser. A wholesale sale refers to purchases for resale or for business, industrial, or
institutional uses. The buyer motive for a retail sale is always personal or family satisfaction,
stemming from the consumption of the item being purchased by an end-user.
In high-service retailing system, margins are higher but turnover is lower and opposite holds for
low-price retailing systems.
Demand-Side positioning strategies include bulk breaking, spatial convenience, waiting and
delivery time, product variety, and customer service
Retailing industry is the highly labour intensive industry.
Because of Cost side and demand side, the retailers positions their retail operations.
Multichannel Retail strategies: Customers prefer buying through multiple channels and types of
outlets, as their purchase behaviour also affected by purchase occasion.
Electronic buying is increasing at an increasing rate but the brick and mortar retailing still
captures significant portion in many categories as e-channel are important for some product line
than for others.
In direct selling channel, the sale is done directly by face to face and at a fixed retail location.
There are distributors who are independent contractors and they purchase inventory at low
price and then sell it at a higher price to the downstream end user.
The pyramid scheme is a fraudulent mechanism in which the new recruits have to pay a fixed
non-refundable amount to the distributor and the existing distributor also got rewards for hiring
new recruit, so they both earn without selling any product or service.
In hybrid retail channel, the retailers or the firms sells their product and service through online
channel and also through brick and mortar channel.