Observation

Mostcandidates who attempted this question performed very well. However, some candidates stated the functions of a retailer to wholesalers for question 6a. For question 6b, some candidates stated the functions of a wholesaler in relations to retailers.

The expected responses are.

6.(a)     Functions of a Retailer to Consumers include:

(i)         Maintaining close relationship with consumers thereby knowing what the consumer’ wants;
(ii)        Informing consumers about new products in the market;
(iii)       Engaging in delivery of goods to consumer;
(iv)       Engaging in standardization and grading of goods in a manner acceptable to consumers;
(v)        Performing storage function by stocking goods for consumers;
(vi)       Making arrangement for replacement of damaged goods;
(vii)      Selling goods directly to the consumers;
(viii)     Offering credit facilities to consumers;
(ix)       Educating consumers on the use of new products;
(x)        Undertaking merchandising activities to encourage consumers to buy the product;
(xi)       Offering varieties of products to consumers;
(xii)      Bridging the gap between the manufacturer and the consumer;
(xiii)     Rendering home service to consumers.                                  

(b)       Functions of a Wholesaler to Producers include:

            (i)         Helping producers to distribute their goods;
(ii)        Providing marketing research support to producers;
(iii)       Providing warehousing facilities;
(iv)       Providing credit facilities to producers by paying for goods ordered in advance;
(v)        Purchasing in large quantities thereby reducing total physical distribution costs;
(vi)       Providing feedback on market trends to producers;
(vii)      Performing packaging function on behalf of producers;
(viii)     Providing information on competitors’ activities to the producer;
(ix)       Advertising goods for the producers;

            (x)        Reducing potential losses to the producers by assuming risk.