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Question

Difficulty: EasySmall-Scale and Large-Scale Retailing

A trader operates a business model where detailed product catalogues are sent to prospective buyers, purchase requests are received through delivery or postal services, and goods are dispatched directly to customers without maintaining a physical retail store for customer visits. Which form of retail trade is represented by this arrangement?

  1. Mail order retailingAnswer
  2. B
    Department store
  3. C
    Itinerant retailing
  4. D
    Supermarket

Answer

Mail order retailing is the form of retail trade that operates remotely through catalogues and delivery services without maintaining a physical store for walk-in customers.
Mail order retailing is specifically characterized by selling goods through descriptive catalogues or advertising media, taking orders via mail, telephone, or online channels, and delivering items directly to customers without requiring a physical retail outlet.

Step-by-Step Solution

1
Identify the key operational features in the question stem.
The business uses product catalogues, receives orders remotely, dispatches goods directly, and operates without a physical shop.
Understanding the mode of customer interaction helps classify the retail trade format.
2
Match these operational features to standard retail definitions.
Mail order retailing relies on postal, delivery, or digital catalogue sales rather than physical store browsing.
Department stores, supermarkets, and itinerant traders all rely on physical presentation of goods to buyers.

Key Concept

Mail Order Retailing
Estimated Time:45s
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Topics

Small-Scale and Large-Scale Retailing

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