Business Questions, Questionnaire Example

1. Identify the factors that define a traditional retailing system.

Factors defining a traditional retailing system include a large number usually thousands of small, family owned retail business units. They are also unorganized meaning they are small in size and not common in modern regions.

2. Explain what factors support the existence of a traditional retail system and give an example of a country that currently operates this type of system.

Factors supporting the existence of traditional retail system include a large population of people in the urban area, sale of consumer oriented products and customer base in rural areas. India is one of the examples of a country that still uses this system.

3. What characterizes a fragmented market?

One characteristic is that no individual company or enterprise can influence the industry to move in a particular direction. Others include availability of several small medium sized organizations and high competition among the businesses including the large organizations.

4. In addition to fragmentation, what other characteristics are indicators of economic development within a given country?

Indicators of economic development include high GDP per capita, high expectancy, high literacy rate, high level of employment, increased standard of living levels and reduced poverty rates.

5. What factors influence channel length? Explain the role of wholesalers in channel activity.

The factors include the nature of goods, market distance, goods perishability, number of customers, size of order, price of goods, and cost of distribution channel. Wholesalers act as intermediaries between producers and retailers or final customers. They also provide information to the producers regarding the market and break the bulk for retailers. They also provide storage services for the goods they sell.

6. Contrast a buyer’s and a seller’s market by describing the conditions that typify each situation.

In a buyer’s market, the level of demand for real estate is lesser than the level of supply. This excess supply is caused by negative consumer confidence that drives them away from the market. Compared to that, a seller’s market consists of high level demand for real estate compared to the supply. The excess demand results in sellers raising the asking price of houses.