Question 2
- Mr Brown, a tomatoes farmer decided to sell his goods directly to consumers. Explain three factors that would have influenced his choice of distribution channel for his goods.
- State five differences between a wholesaler and a retailer.
Observation
Most candidates could not attempt the (a) part of the question. This may be attributed to the fact that the question is an applied one. Candidates failed to recall that tomatoes are perishable produce that need quick delivery. The (b) part of the question was well attempted by candidates.
The responses expected from candidates are:
2. i. The perishable nature of tomatoes demands quick delivery to consumers.
ii. special handling is required in the delivery of tomatoes to minimize damage in transit.
iii. lack of storage facilities for tomatoes makes it imperative to distribute directly to consumers.
iv. lack of processing facilities lead to direct delivery of tomatoes to consumers.
(b) Five differences between Wholesaler & Retailer
S/NO. |
WHOLESALER |
RETAILER |
1. |
Buys large quantities of goods |
Buys smaller quantities of goods |
2. |
Requires large storage space |
Requires small space (a shop) |
3. |
Stocks limited varieties of goods |
Stocks many varieties of goods |
4. |
Intermediary between manufacturer and Retailer |
Intermediary between wholesaler and final consumer |
5. |
Interacts freely with manufacturer |
Interacts freely with the final consumer |
6. |
Travels long distance to buy goods |
Buy goods within his vicinity |
7. |
Spends more money on particular product |
Spends less amount on variety products |