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Employee Empowerment – Good or Bad
What motivates people to work? Money may be the primary reason, but beyond a certain limit it fails to. Organizations have been trying out different things to increase the level of motivation of its employees. Employee empowerment is one of them. Employee empowerment means that an employee is given a chance to be enterprising, take […]
Information System for Training and Development
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The Basics of Microinsurance
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Separation of Investing and Financing Decisions
We have already seen that there are a lot of differences that arise between what we have learned in accounting and how we use it in corporate finance. The separation of financing and investing decisions is one such important concept. It is important because we have to make a very important adjustment based on this […]
Before understanding the concept of retail, let us first go through few terminologies.
Jack owned two laptops which he sold to Mike. In this case Jack is the seller while Mike is the buyer. Laptops are the goods which were earlier in Jack’s custody and now belong to Mike.
Retail involves the sale of goods from a single point (malls, markets, department stores etc) directly to the consumer in small quantities for his end use. In a layman’s language, retailing is nothing but transaction of goods between the seller and the end user as a single unit (piece) or in small quantities to satisfy the needs of the individual and for his direct consumption.
Let us understand the concept with the help of an example.
Tim wanted to purchase a mobile handset. He went to the nearby store and purchased one for himself.
In the above case, Tim is the buyer who went to a fixed location (in this case the nearby store). He purchased a mobile handset (Quantity - One) to be used by him. An example of retail.
The store from where Tim purchased the handset must have shown him several options for him to select one according to his budget and need.
From where do you think the store owner (also called the retailer) purchased all the handsets?
Here the manufacturers and the wholesalers come into the picture.
The retailers purchase goods in bulk quantities (huge numbers) to be sold to the end-users either directly from the manufacturers or through a wholesaler.
| Manufacturers | ........................ | Retailers | ................ | End User (Consumer) |
| Wholesalers |
The end user goes to the retailer to buy the goods (products) in small quantities to satisfy his needs and demands. The complete process is also called as Shopping.
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