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Difficulty: MediumSmall-Scale and Large-Scale Retailing

A manufacturing firm distributes its consumer goods directly to buyers by issuing illustrated catalogs and accepting orders primarily through postal or electronic communication, completely dispensing with physical storefronts. Which large-scale retail trading format is this enterprise employing?

  1. Mail order businessAnswer
  2. B
    Department store
  3. C
    Tied shop
  4. D
    Supermarket

Answer

Mail order business
The mail order business is a form of large-scale retailing where trading is conducted entirely without physical shop premises, relying instead on descriptive catalogs, advertisements, and postal or courier delivery services.

Step-by-Step Solution

1
Identify the key operational characteristics in the question scenario
The business uses catalog distribution, remote ordering, and lacks physical shop premises.
Retail formats are classified based on whether they operate via physical storefronts or direct non-store communication channels.
2
Match the features to the appropriate large-scale retail format
Mail order retailing is specifically designed to eliminate physical stores by relying on catalogs and mail/postal delivery.
Department stores, tied shops, and supermarkets all depend on physical retail locations for customer visits.

Key Concept

Mail Order Retailing
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Topics

Small-Scale and Large-Scale Retailing

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