Question

1-Describe the 3 major classes of ownerships of retailers

2-What are the differences between consumer and business channels? Channels for consumers Products

3) Describe the major types of product advertising

Answer 1

1. The three major classes of ownerships of retailers are as follows:

1. Independent

2. Corporate Chain

3. Franchise

Independent ownership of retailers is that in which a owner, who have built their business by their own. The decision making is also done by owner from planning to opening. The decisions that has to make by the owner are employee hiring, salaries of employees, benefits, store policies, visual presentation, building maintenance, etc. But they have the benefits such as they can response in a fastest way or quicker to customers needs as well as market volatilities. They are flexible in nature. The handling of the business needs lots of work pressure. The capital liabilities are more.

The Corporate Chain are those business in which two or more parties/ companies are involved under common ownership. They can operate with multiple units. They have centralized headquarter. Their capital liability is divided. They can grow further as they have established policies. It is cheaper to buy goods for the multiple stores as required in much more bulk. The decision making and work pressure is divided.

Franchise is the retail store in which the franchisor and franchisee have the agreement to use franchisor name, product, concepts as well as business plan. The franchisee has to work on already well-established business of franchisor.