Lesson+08

Lesson 8 - Retailers in a Private Enterprise System

Important Terms for this Lesson retail sales – sales of durable and nondurable goods bought by consumers • intermediaries – businesses involved in selling the goods and services of producers or consumers and other businesses • channel members-the businesses that take part in a channel of distribution • traditional retailers-department stores, discount stores, specialty stores, supermarkets, and convenience stores developed over the past 100 years • non-store shopping-mail order, vending machine, and Internet purchases • retailer-purchases goods from a wholesaler and resells them to the consumer or the final buyer of the goods • e-commerce-electronic commerce through the Internet • multi-channel retailer-when a store sells products in stores, by mail, and online • bricks and mortar-stores and warehouses • clicks-and-mortar-businesses that also use the Internet ||

Lesson Summary What is an intermediary? The intermediary is a business involved in selling the goods and services of producers to consumers and other businesses. Which type of business is the fastest growing in the United States? Service businesses are the fastest growing in the United States. What is a direct channel of distribution? A direct channel of distribution occurs when products move from the producer straight to the consumer with no other organizations participating. Why are prices higher at a convenience store? <span style="font-family: Arial,Arial;">Prices are higher because the convenience store carries a limited quantity of merchandise. <span style="font-family: Arial,Arial;">Why have specialty superstore become popular? <span style="font-family: Arial,Arial;">Consumers like to make one stop for all of their needs; the superstore provides this convenience. <span style="font-family: Arial,Arial;">: What is a factory outlet store? <span style="font-family: Arial,Arial;">A factory outlet store carries large quantities at lower prices. Clothing outlet stores carry end-of-the-season or last seasons styles at lower prices. <span style="font-family: Arial,Arial;">What type of retailer is a luxury automobile dealership? <span style="font-family: Arial,Arial;">The luxury automobile dealership is a showroom retailer. Consumers choose a car that frequently has to be special ordered. ||
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