(a) Define product retailing (b) Outline any three roles performed by the wholesaler to the manufacturer (C) ldentify any three problems associated with dis...

Answer Details

(a) Product retailing. Retailing is the final stage in the chain of distribution in which goods are sold in small quantities directly to the final consumer for personal use. The retailer buys from the wholesaler (or producer) and breaks bulk to serve individual buyers.

(b) Three roles of the wholesaler to the manufacturer.

• Provides a ready market and buys in bulk: the wholesaler purchases large quantities, enabling the manufacturer to sell output quickly and continue production.
• Warehousing (storage): the wholesaler stores goods, relieving the manufacturer of the cost and risk of holding large stocks.
• Provides finance: by paying for goods (often in advance or promptly), the wholesaler supplies the manufacturer with working capital.
• Bears risk and gives market information: the wholesaler bears storage and price risks and feeds back consumers' tastes and preferences to the manufacturer.

(c) Three problems associated with distribution of products.

• Poor transport and infrastructure: bad roads and inadequate storage raise cost and cause delay and spoilage.
• High cost of distribution: transport, storage and middlemen charges raise the final price to consumers.
• Hoarding and adulteration by middlemen: some intermediaries hoard goods to create artificial scarcity or tamper with products.
• Perishability of goods: without cold storage many products spoil before reaching consumers.

Examination reminder: address the roles specifically to the manufacturer (not the consumer), since the question fixes the audience.