Question 3
-
Explain the following retail outlets:
- department store;
- mobile shop;
- chain store;
- mail order business;
- supermarket.
Observation
Most candidates performed well in the question with the exception of mail order business. Most candidates do not know the features of mail order business.
The expected responses are.
- Department Stores
- It is a large scale retail unit in which many different stores are housed in a large building under the same roof.
- They are divided into different departments or stores.
- Each department specialises in the sale of a particular type of product.
- Every product carries fixed price tag thereby making purchases simple and easy.
- Every department store has a General Manager who coordinates the activities
of all Sectional Managers. - They are found mainly in urban centres.
- They offer opportunity for one-stop buying.
(ii) Mobile Shops
- They operate from motor vans or trucks and move from place to place.
- They sell a wider range of goods and are accessible to the consumers.
- They advertise their goods through playing of music, ringing bells or other
methods. - They offer personal service to their customers.
(iii) Chain Stores
- They are large scale retail business units with standard shop front scattered all
over the country. - They deal in one line of product in all their branches.
- Goods sold in all their branches are manufactured or purchased by the Head
Office and distributed to all branches.
- Their prices are pre-determined by the Head Office.
- They are found in urban centres.
- Goods have price tags.