A chain of distribution is shown below. manufacturer → wholesaler → retailer → X

Mark scheme

Marking points from the official mark scheme (May/June 2019). The mark or mark type is shown in brackets.

1. [1] Consumer or customer
2. [1] Breaking bulk
3. [1] Variety of goods
4. [1] Advice/information
5. [1] Display
6. [1] Storage
7. [1] Preparing goods for sale / packing / branding / grading / blending / bottling
8. [1] Delivery/transport
9. [1] Acting as a stock reservoir / keeping seasonal goods
10. [1] Risk bearing
11. [1] Credit
12. [1] Advertising
13. [1] Convenient location
14. [1] Trade discount offered
15. [1] Cost savings for the retailer / wholesalers increase selling price
16. [1] large-scale retailers buy direct from manufacturers
17. [1] as they have the working capital to buy in bulk / or manufacture their own goods
18. [1] and provide the wholesaler services themselves
19. [1] by delivering to their own shops via RDCs
20. [1] Better value for money for consumers
21. [1] many manufacturers sell branded goods
22. [1] direct to consumers through the internet / mail order / own shops
23. [1] no need to use sales representatives
24. [1] as these goods are easily recognised / do not have to be marketed
25. [1] Growth of online selling
26. [1] by individuals selling their goods from home
27. [1] at cheaper prices
28. [1] as they do not have overheads
29. [1] Greater efficiency for the retailer
30. [1] reduces the amount of logistics and transportation
31. [1] where manufacturers can skip wholesalers and more quickly replenish retailers with stock
32. [1] Environmental impact
33. [1] as it minimises the number of trucks / travel / time moving goods
34. [1] reducing air pollution
35. [3] A quotation is sent by the buyer to the seller (FALSE); A credit note is used when goods have been overcharged (TRUE); A bill of lading is used in rail transport (FALSE)
36. [1] Cash and carry warehouses are used by small-scale retailers because the warehouses are close to where the retailer sells its goods.
37. [1] Most wholesalers are self-service so quick and easy for a retailer to use.
38. [1] Retailers pay cash for larger / small bulk quantities of goods and arrange their own transport, then sell the goods on in smaller quantities at a profit.
39. [1] Analysis: Lower prices - goods are not delivered and no credit is offered, no help with loading goods and no use of salespersons or invoicing. This means wholesalers reduce their expenses so can sell to small-scale retailers at cheaper rates.
40. [1] Saving time - retailers can have immediate access, no waiting for goods to arrive, especially if there is an increase in demand for particular goods the retailer can get them quickly, no time spent on purchasing procedures.
41. [X] Evaluation: Many small-scale retailers, including pedlars, market stall holders and street vendors could not be in business at all without cash and carry warehouses so they are very important to domestic trade in many cities because they provide a service to local people and an income/employment for the retailer which contributes to economic growth.