Types of Consumer market

Family Economics And Consumer Education 3 (2+1)

Lesson 24: Consumer Markets

Types of Consumer market

Whole sale outlets:
Wholesale outlets consist of shops and sellers who present goods in large quantities. Whole sale shops sell goods in large quantities like dozens, hundreds or in quintals etc depending upon the nature of the products and packages. The sellers in wholesale markets buy goods directly from farmers or from manufacturers. Food items are brought straight from farms and the farmers themselves retail them in the market. The price of such items are less since no middle man is involved. The quality of such goods are also good as they are brought straight to the market without storing.
Retail stores:

The sellers in the retail stores buy the goods from the whole sales and add their margin of profit before selling the same to the consumers. Price of goods in retail stores is higher than the whole sale price. However the consumer can buy in small and needed quantity without the problem of transporting.
Co operatives:

This is retail out let, owned and run by consumers. A group of consumers form a registered society. It runs the store which is known as consumer co operative store. Individual consumers become members of the society and buy its shares which pays dividend to share holders. The society conducts the business and sells goods at a profit margin. The prices are lower than the goods at retail shops.

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State Emporia:
These outlets sell goods to consumers. The product ranges include household items, clothes, jewellery, crafts and decorative items. The products sold by the state emporia are of high quality and at reasonable prices. There is no scope for duplicate goods being sold as the state takes the responsibility of procuring and selling genuine goods for instance handloom house.
Speciality stores:

These stores deal in particular line of products. Such products line includes health, food, drugs, ready made goods, foot wear etc. These sellers have specialized knowledge about the products. Hence they have an edge over departmental stores and other competitors. Consumers find such stores easy as they are not very large.
Convenience stores:

These stores are kept open for long hours. The products are usually limited to essential daily use items. Such stores csusually offer items like milk, bread, butter, canned and packages foods, soups, sauces fruits etc. These stores are usually small but they enjoy high turnover because they deal in popular and essential items. These items can be obtained at any hour of the day.
Variety stores:

These storsses offer large variety reasonably priced goods ranging from stationery, gift items, toiletries, light, household goods, confectionary and some provisions. They deal in almost every item a person or a family may need for everyday living.
Department stores:

This is a retail unit. It sometimes runs across many floors of a building. Department stores offer practically cdeverything from needle onwards. The stores are organized in departments for food, crockery, clothing, books and stationery etc. These stores conduct their business on self help basis of services though shop assistance is available when required.
Discount stores:

These stores have a low operating cost ratio about 10 per cent lower than those of departmental stores. They are variety stores. The lower costs of these stores is mainly due to their location in areas where rents and other costs are low , like labour cost and low cost buying in large volume from manufacturers.
Door to door selling:

This type of selling is also known as mobile vending. It is an age old practice in India which exists even today. This practice has lower overhead costs and is very effective also. It is cost saving and time saving products are selected at the door of the buyer himself. Buyer need not waste time in going to market products sold through this practice include bed sheets, table linen, cosmetics, detergents, appliances like vacuum cleaner and water purifiers , dairy products news papers carpets etc.

Vending machines:
These include coin operated machines which are fixed at certain locations for the automatic supply of beverage dcincluding milk, tea, coffee and cold drinks.
Selling by phone:

The practice of selling through home delivery is becoming common. Here consumers can order their requirements by phone and get them delivered at home free of charge, the bills come with the goods and they are paid after inspection of the items ordered. Items which are not acceptable can be returned and the bill is adjusted accordingly.

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Last modified: Thursday, 5 April 2012, 12:31 PM