State three advantages and one disadvantages of... | WAEC SSCE - Agricultural Science - 2005

Question 1 Report

State three advantages and one disadvantages of each of the following marketing agents (i) retailers (ii) Wholesalers (iii) co-operative societies.

Answer

Three advantages and one disadvantage of each marketing agent are given below.

Marketing agent	Three advantages	One disadvantage
(i) Retailers	1. They sell produce in small units convenient to the final consumer. 2. They are located close to consumers, making goods easily available. 3. They give consumers information and sometimes credit, and offer a wide variety of goods.	They usually sell in small quantities at relatively high prices, so goods cost more per unit to the consumer.
(ii) Wholesalers	1. They buy in bulk from producers, giving farmers a ready market. 2. They provide storage and break bulk into smaller lots for retailers. 3. They finance the marketing chain and bear the risk of price changes and storage.	They require large capital and storage facilities, and can hoard produce to create artificial scarcity and raise prices.
(iii) Co-operative societies	1. They secure better prices for members by selling in bulk and cutting out exploiting middlemen. 2. They provide members with credit, inputs, storage and processing facilities. 3. They give members a stronger bargaining power and market information.	Poor management, dishonesty of officials and delay in decision-making can reduce their efficiency and members' returns.

Answer Details

Three advantages and one disadvantage of each marketing agent are given below.

Marketing agent	Three advantages	One disadvantage
(i) Retailers	1. They sell produce in small units convenient to the final consumer. 2. They are located close to consumers, making goods easily available. 3. They give consumers information and sometimes credit, and offer a wide variety of goods.	They usually sell in small quantities at relatively high prices, so goods cost more per unit to the consumer.
(ii) Wholesalers	1. They buy in bulk from producers, giving farmers a ready market. 2. They provide storage and break bulk into smaller lots for retailers. 3. They finance the marketing chain and bear the risk of price changes and storage.	They require large capital and storage facilities, and can hoard produce to create artificial scarcity and raise prices.
(iii) Co-operative societies	1. They secure better prices for members by selling in bulk and cutting out exploiting middlemen. 2. They provide members with credit, inputs, storage and processing facilities. 3. They give members a stronger bargaining power and market information.	Poor management, dishonesty of officials and delay in decision-making can reduce their efficiency and members' returns.

State three advantages and one disadvantages of each of the following marketing agents (i) retailers (ii) Wholesalers (iii) co-operative societies.