(a) State five functions of a retailer to consumers. (b) State five functions of a wholesaler to producers.

Answer Details

(a) Five functions of a retailer to consumers

1. Provides goods in small quantities: The retailer breaks bulk and sells in the small units that individual consumers need.
2. Provides convenient location: The retailer sites shops near consumers so they can buy easily without travelling far.
3. Offers variety of goods: The retailer stocks assorted products and brands, giving consumers a wide choice under one roof.
4. Gives information and advice: The retailer informs consumers about new products, their uses and prices.
5. Provides after-sales and credit services: The retailer may deliver goods, allow credit, and offer guarantees or repairs to consumers.

Other acceptable function: keeps goods in stock so they are readily available when needed.

(b) Five functions of a wholesaler to producers

1. Buys in bulk: The wholesaler buys large quantities from the producer, giving the producer a ready and steady market.
2. Provides storage: The wholesaler warehouses goods, relieving the producer of the cost and risk of holding large stocks.
3. Provides finance: By paying promptly, often in advance or cash, the wholesaler provides the producer with working capital.
4. Bears risk: The wholesaler takes over risks such as price changes, spoilage and loss once the goods are bought.
5. Assists in distribution and promotion: The wholesaler spreads the producer's goods to many retailers and helps advertise and promote them.

Other acceptable function: provides the producer with market information about customer demand and preferences.