Retailing Management 8th Edition by Michael Levy,Barton Weitz

Question

Retailing Management 8th Edition by Michael Levy,Barton Weitz

Edition 8ISBN: 978-0073530024

Retailing Management 8th Edition by Michael Levy,Barton Weitz

Edition 8ISBN: 978-0073530024

Exercise 2

From your perspective, what are the benefits and limitations of purchasing a home entertainment system directly from a number of component manufacturers rather than from a retailer

Explanation

Verified

Retailer refers to a business through which the end customers purchase goods. Retailers purchase goods from the wholesalers or manufacturers in bulk quantities and sell them to the end customers in smaller quantities. The retailer might be the manufacturer itself or it can might be another firm. Retailers are the final link in the supply chain which delivers goods to the end customers.
An initial benefit to purchasing a home entertainment system directly from the component manufacturers is that it would be cheaper. Although with that said there are many limitations to purchasing directly from the component manufacturers. The first would be that you have to put everything together, which requires extensive knowledge about the entertainment system pieces. Another limitation would be that it is very time consuming to order from each individual manufacturer and it would take a lot of time to piece together the entire system.