Types of Retailers - Mail Order Houses and Cooperative Stores
Covers key concepts about mail order houses and consumer cooperative stores, including their characteristics, advantages, disadvantages, and operations.
Questions
Under Mail Order House, for obtaining orders, potential customers are approached through _________.
- advertisements in newspapers or magazines
- samples and bills
- price lists sent
- all of the above
The people entrusted with the management of cooperative stores lack expertise as they are not trained in running the stores efficiently.
- True
- False
The biggest advantage of mail-order business from the point of view of consumers is that unnecessary middlemen between the buyers and sellers are eliminated.
- True
- False
Sellers cannot clear all the doubts of customers through catalogues and advertisements. This is because of _____.
- High promotion cost
- No after sales service
- Delayed delivery
- Lack of personal contact with customers
The consumer cooperative stores normally sell goods on cash basis.
- True
- False
The profits earned by consumer cooperative stores are utilised for ________________.
- declaring bonus to members.
- strengthening the general reserve.
- social and educational benefit of members.
- all of the above
There can be different alternatives for receiving payments for a Mail Order House. They are _______.
- full payment in advance
- Value Payable Post (VPP)
- the goods may be sent through a bank
- All of the above
To ensure fair management of funds the accounts of the stores are audited by _______.
- Registrar of Cooperative Societies
- Registrar of Companies
- Registrar of Retail Stores
- Joint Stock Company
The seller approaches the customers by advertising the goods through ______.
- the press
- sending circulars
- samples and catalogs
- all of the above
Mail order business is known as shopping by ___.
- email
- fax
- post
- website
Mail order houses are confronted with the problems like _______.
- damage of goods in transit
- excessive operating cost
- credit policies
- all of the above
Under ________ system the goods can be sent to all the places having postal services.
- mail order houses
- chain Stores
- departmental store
- specialty shops
Mail order retailing is also referred to as _______.
- non-store impersonal retailing
- shopping by post
- selling by post
- (A) or (B) or (C)
What are the disadvantages that Consumer Cooperative store faces?
- Lack of patronage.
- Lack of business training.
- Shortage of funds
- All of the above
Name the type of goods that are suitable for trading through mail order houses.
- Goods that can be graded and standardized
- Goods that can be easily transported at a low cost
- Goods that can be described through pictures
- All of the above
How the capital of a cooperative store is raised?
- Through issue of shares.
- By inviting subscriptions from the members
- By raising funds from the general public.
- All of these
The success of mail order business depends heavily on the availability of __________ at a place.
- efficient postal services
- credit facilities
- after sale services
- none of the above
What are the minimum number of members required to form Consumer Cooperative Store?
- 5
- 10
- 15
- 20
What are the disadvantages that acts as a hindrance while trading through mail order houses?
- Delayed delivery
- No credit facilities
- Lack of personal contract
- All of these
What are the main advantages of Consumer cooperative stores?
- Democratic management
- Ease of information
- Limited liability
- All of the above
Which of the following is a characteristic of a mail order house?
- Huge capital requirement
- Elimination of middle man
- Presence of bad debt
- None of the above
The accounts of cooperative stores are audited for ____________.
- registrar of companies
- manager of the store
- registrar of cooperative societies
- none of the above
Where do cooperative stores purchase their goods?
- Directly from Wholesalers.
- From retailers.
- From manufacturers
- Both A and C