THE ROLE OF RETAILER IN THE DISTRIBUTION OF CONSUMER GOODS 

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

Any organization selling to final consumer whether it is a manufacturer, wholesaler or retailer is doing retailing. It does not matter how the goods or services are sold (by person, mail, telephone, vending machine or internal) or where they are sole (in a store, at a street, or at the consumer’s house).

As a result of this, several businesses have emerged, as retailers help in the distribution of consumers goods, but in spite of this effort, some consumers still believe that their function is not important and therefore it should be eliminated.

It is therefore the purpose of this research work to find out the reason for the continuous agitation by consumers and also to proffer solution to this effect.

The researcher will also work extensively to ascertain how the retailers facilitate the flow of consumer goods from the producer to the final consumer.

By so doing the consumer will now found out that the function of retailer in the distribution of goods is important.  

STATEMENT OF RESEARCH PROBLEMS

The researcher has been able to identify a problem which in fact has aroused its interest in trying to find a solution to it.

The problem therefore, is about the credit facilitates. Many retailers are unable to continue as a result of lack of capital which the customer (consumer) are holding in form of credit facilities offered them. When too much credit is allowed, capital will be drastically affected which may lead to failure of the business unit.

Another major problem in the distribution of consumer goods is lack of advertisement. Retailer should not over look the wise saying in business if you do not say I am, nobody will know there you are. Many retailers fail because they think advertising is a waste of money and energy. That is why the general public has a poor understanding of this channel of distribution. 

OBJECTIVE OF THE STUDY

For the purpose of this work, the researcher aim at achieving the following:

1. To know whether the use of retailer is justifiable, irrespective of the additional cost, their presence or operation put on consumer goods.
2. To determine the relative importance of retailers from the view point of its continuous usage.
3. To determine the circumstance in which the retailer could be eliminated from distribution of consumer goods to the final consumers.
4. To discuss and identify the present type of retailers in the distribution of consumer goods.

SCOPE OF THE STUDY

The research work is actually going to be limited to a certain features. It will be focus on the distribution of consumer goods by reviewing various literature and journals related to the topic.

The retailing system and its effective management and the classification of consumer goods. As were as the various type of retailers will be examined in details.

The importance and function carried out by the retailers will not be left out, it is obvious that the retailer encounter uncountable problems in caring out their roles, this research work is also design to identify these problems and offer solution or recommendation to these deficiencies.

The subsequent re-organization of the marketing system to get ride of the retailers will aloe be considered.

To this end it will be observed that when these issues are properly match out consumer will certainly have smile in their face.

SIGNIFICANCE OF THE STUDY

This research work will however be useful to several individual and bodies, among which are;

1. It will enable the researcher to contribute its quota in the academic discipline.
2. It will qualify the researcher for an award or fulfillment of the HND certificate.
3. For fourth coming students to enrich their knowledge.
4. Useful to the economy and government agencies when the need of economy growth/development arises.
5. Useful to the present and potential retailers who wish to improve in their practice to the channel of distribution and in consumer satisfaction.
6. Useful to consumer as it will enable them identify and evaluate genuine retailer to satisfy their wants.

STATEMENT OF HYPOTHESIS

For an understanding of the problem put forward for investigation the researcher has proposed several assumption that is expected to the tested based on the data collected and analyzed.

To this end, the researcher had developed a list of hypothesis which can either be true or false. The null hypothesis is that which can be accepted where the alternative hypothesis is rejected.

Hypothesis I    

HI:     Retailers contribute to increase in prices of consumer goods.  

Ho:    Retailers does not contribute to increase in prices of consumer goods.

Hypothesis II

HI:     Adequate experience and education enhance retailers performance in the distribution of consumer goods.

Ho:    Adequate experience and education does not enhance retailers performance in the distribution of consumer goods.

Hypothesis III

HI:     The role of retailers is in significant in the distribution of consumer goods.

OPERATIONAL DEFINITION OF TERMS

1. Retailing: This include all the activities involve in selling goods or services directly to the final consumers for personal, non business use.
2. Retailer: A retailer store is any business enterprise whose sales volume comes primarily and its ultimate consumers. Any intermediary between the producers and consumer goods such function as storage and distribution to the final consumers.
3. Manufacturer/producer: A person or group of persons who is able to convert input to output to the effective utilization of consumers.
4. Agent: Business units, which negotiated purchases or sales on behalf of the producer but does not take title to the goods in which he deals.
5. Dealers: A firm that buy and resell merchandise as either retail or wholesaler. It is the person who has agreed to carry and sell manufactures product for profit.        
6. Wholesaler: Business unit which buy and resell merchandise to retailer and other merchant industries, for commercial users but which does not sell in small volume to ultimate consumers.
7. Merchants: A business unit that buys, take title to and resell merchandize.
8. Manufacturer Representation: An independent business people who have arrangement with several manufacturers to sell their goods to retailers.
9. Market: People with need to satisfy, money to spend and the willingness to spend it, or set of al actual and potential buyer of a product or services.
10. Marketing: The exchange of activities conducted by individual and organization for the purpose of satisfying consumers and achieving marketing goals in dynamic environment through the creation, distribution, promotion and pricing of goods, services and ideas.
11. Wholesale Trade: The sales of activities directed related to the sales of product to those who are buying for the purpose of sale.
12. Consumers: Who buys goods and services for his or her own use, for the use of household of just one member of the household.
13. Product: A product is anything that can be offer to a market for attention use or consumption that might satisfy want or need.
14. Warehouse: This is a storage facility where goods are being kept until they are dispatched in price. This is the mechanism for translating into money the value of a product to a consumer at a point in time.
15. Price: This is the mechanism for translating into value of a product to a consumer at a point in time.
16. Consumer goods: These are product destined for use by ultimate consumer or household and in such that they can be used without processing.
17. Channel: The word channel connote in its marketing application, a path way taken by goods as they flows from point of production to point of intermediate and final use on the other hand, channel is the method use by company to communicate and interact its customers.

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