Question 2 of 18beginner💡 UnderstandShort Answer3 marks

Specify the characteristics of fixed shop retailers.

Correct Answer

Fixed shop retailers are the most common type of retailing in the market place. They maintain permanent establishment to sell their merchandise and do not move from place to place to serve their customers.

The main characteristics of fixed shop retailers are:

(a) Compared with itinerant traders, normally they have greater resources and operate on a relatively large scale. However, there are different size groups of fixed shop retailers, varying from very small to very large.

(b) These retailers may be dealing in different products, including consumer durables as well as non-durables.

(c) This category of retailers has greater credibility in the minds of customers, and they are in a position to provide greater services to the customers such as home delivery, guarantees, repairs, credit facilities, availability of spares, etc.

Exercise: EXERCISES | Q: 2 | (Page 29)
For More Understanding

Explanation

The textbook clearly lists three main characteristics of fixed shop retailers under section 10.5.2. Students should mention that these retailers have permanent establishments, have greater resources than itinerant traders, deal in various products, and enjoy greater credibility while providing additional services to customers. The answer covers all key points from the textbook context.