An Analysis of the Advantages and Disadvantages of Retail Gravity Theory

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An Analysis of the Advantages and Disadvantages of Retail Gravity Theory Question - Discuss the advantages and disadvantages of retail gravity theory. Need to be 75 word or more. Answer – The word ‘retailer’ has been derived from the French word “retail” which means to cut of or divide into small pieces foe selling to the consumers. In other words, retailer refers to selling the goods in smaller quantities to the consumers. Advantages 1. They can start business with lesser capital. 2. The retailer performs all the important functions of marketing viz. buying and assembling, warehousing, selling, risk bearing, grading, packing, financing and advertising etc. 3. They operate both on small scale and large scale basis. 4. Retailer helps in introducing new products in the market. Disadvantages A retailer has to bear different type of risks in relation to goods. While in stores, goods are exposed to various risks like deterioration in quality, spoilage and perish ability etc. The products are confronted to natural risks viz; fire, flood, earthquake and other natural calamities . Other type of risks like change in customers tasters also adversely affect the sales.
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