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The document discusses factors that influence how much a person spends per transaction at a retail store and reasons why retailers may choose selective or exclusive distribution channels. It states that the average retail transaction amount is $53.98 according to data and that spending depends on available funds, purchase decisions, store layout and product selection. Retailers' choices on distribution channels depend on their goals and situation as exclusive channels offer higher profits while selective channels allow for more product variety and store traffic.

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23 views2 pages

Assignment

The document discusses factors that influence how much a person spends per transaction at a retail store and reasons why retailers may choose selective or exclusive distribution channels. It states that the average retail transaction amount is $53.98 according to data and that spending depends on available funds, purchase decisions, store layout and product selection. Retailers' choices on distribution channels depend on their goals and situation as exclusive channels offer higher profits while selective channels allow for more product variety and store traffic.

Uploaded by

ms6388368
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Submitted By.

: Muhammad Saqlain

Registration No. : 2020-Uam-2419

Submitted To : Mam Khadija Zubair

Course Code : BBAA-508

Course Title : Retail Management

Agribusiness and Applied Economics

BBA Agribusiness 6th:

Q1) What is the average amount that you spend in a retail store per transaction? What factors are
likely to influence your supermarket transaction spend compared to other retailing spending?

According to retail data, the average amount spent by a person in a retail store per transaction value is
$53.98. Without statistics and data, depending on who you ask, the answer may be different, depending
on the kind of retail store and demand. The average amount that you spend in a retail store per
transaction depends on many factors. It depends on how much money you carry when you went to a
retail store. It also depends on your decision when you went to a retail store like what you want to buy.
When you went to a retail store, you have a variety of choices. So, your decision may be influenced by
the visual display of products with in the retail store. When a customer went to a retail store, the retail
store adopt different strategies to interpret the customer mind. The layout of the products and sale on
some attractive products interpret the customer mind. It also depends on the kind of retail store you
visit. So, we cannot exactly calculate the average amount that you spend in a retail store per transaction,
but we can make an idea about the average amount that you spend in a retail store per transaction.

There are many factors which are likely to influence your supermarket transaction spend compared to
other retailing spending. Some of the factors are given below

Product Quality

Price

Brand Image

Availability of productu

Convenient Location Environment

Q2) One retailer wants to be a part of a selective distribution channel. Another wants to be part of an
exclusive distribution channel. What might be the reasons for these choices?

Its totally depends on retailer wants and situation because the final goal of the retailer is to earn profit
and maximize thier profit in exclusive channel the retailer carry just specific supplier products in this way
he earn much profit on the other hand if the retailer go with selective channel he carry various but
specific supplier items in this way he he earn profit as well as rush in his store
The choice of distribution channel depends on retailer. Relationships among retailers and Suppliers can
be depend on situation and choice. Because retailers are part of a distribution channel, manufacturers
and wholesalers must be concerned, customer service, store hours, and retailers’ reliability as business
partners. Retailers are also major customers of goods and services for resale, store fixtures, computers,
management consulting, and insurance. These are some issues over which retailers and their suppliers
have different priorities: control over the distribution channel, profit allocation, the number of
competing retailers handling suppliers’ products, product displays, promotion support, payment terms,
and operating flexibility.

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