NCERT 7th Class (CBSE) Social Science: Markets Around Us

Question: How is retail different from wholesale? or what are the difference between wholesalers and retailers?

Answer: 

Question: Discuss the role of a retailer in the marketplace.

Answer: Role of a retailer in the marketplace:

Link between producer and consumer:

1. The main role of the retailer is to act as a link between the producers and the consumer.
2. By stocking various goods under one roof, the retailers becomes a one-stop shop for the customers.
3. The retailer also acts as a publicity agent for the producers. By keeping a check on the quality of goods sold, she or he also ensures a regular customer bank and builds up brand loyalty.

Attracting customers:

1. The retailer is the person in direct contact with the consumer. Hence he / she plays an important role in attracting customers towards a particular brand.
2. Since customer satisfaction is the key to the success of any trade, a retailer takes great care in stocking popular branded items. He / She takes care to stock ‘moving’ items, i.e., items in high demand, so that no customer goes back empty-handed as it would make them lose goodwill.
3. Retailers also attract customers by displaying products attractively.
4. Thus, the use of proper display techniques to attract customers attention and arouse their interest is an important role of the retailers.

Question: What are the factors determining people’s choice of markets?

Answer: People’s choice of markets depends on certain factors like availability, convenience, quality, prices and the kind of credit being given.

1. people usually prefer to go to whichever market is most convenient, especially with regard to distance.
2. They also check the various markets and then choose the one which gives them the best quality at the lowest price. This choice also depends on the income level of the consumer.
3. Many people wait for the announcement of the annual sale of the popular shops, when goods are sold at a big discounts.
4. People who do not want to make a one-time payments for product they want to buy, such as computer will look for a shop which is willing to sell on credit.

Question: How is the modern concept of marketing different from the traditional concept?

Answer: Traditionally, a market is a place where sellers and buyers exchanged goods for money. The focus of marketing was all about distributing goods and services and maximizing profits. The needs and wants of the customer were not studied or taken into account.

Modern concept of marketing differs from the traditional. Sensing, servicing and satisfying the needs and wants of the customers in a more effective manner is very much a part of the modern concept of marketing. According to this, customer satisfaction is the key to success. Marketing organizations compete with each other to provide better customer satisfaction, and thus win hearts and increase their business.