Chapter 7 - Understanding Advertising
Question and AnswersQuestion 1: In what ways is a hawker different from a shop owner?
Answer: A hawker does not have a fixed location from where he/she sells his items. Instead, he/she moves from one location to another, selling his/her wares at a minimum profit. There is a minimum capital investment when it comes to setting up a business unit and there is no limit to the wares that can be sold by a hawker while bringing his/her service to the very doorstep of customers.
A shopkeeper has a fixed building from which he/she sells his wares. Customers will come to buy their desired items to the shops. A shopkeeper’s customer base is limited to the geographical location of his/her shop. The wares sold can be limited to the type of shop. For example, a clothing store will only sell clothes, while an electrical shop will only sell electric items etc.
Question 2: Compare and contrast a weekly market and a shopping complex on the following:
Market |
Kinds of Goods sold |
Prices of the goods |
Sellers |
Buyers |
Weekly Market |
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Shopping Complex |
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Answer:
Market |
Kinds of Goods sold |
Prices of the goods |
Sellers |
Buyers |
Weekly Market |
Different items of everyday use such as vegetables, groceries, cloth, items, utensils, etc |
Prices of the goods are not that high. It can be easily afforded. |
Small traders and hawkers |
People belonging to the low - middle - income group |
Shopping Complex |
Branded items such as readymade clothes, home appliances, footwear, leather items, etc. In some complexes, there are even food items available for immediate consumptions |
Prices of the goods are usually high. Only those who have a higher income can buy them. |
Big businesses and traders |
People belonging to the upper - middle class and above |
Question 3: Explain how a chain of markets is formed. What purpose does it serve?
Answer: Goods are first produced in factories, farms and homes (depending on what type of business it is). However, it does not mean that a consumer needs to visit these places to buy these goods, since the ones making them will not sell in small quantities to an individual buyer.
This is where wholesale traders come in. They are the intermediaries between the producers and the final consumers. They first buy the goods in bulk and then sell them to the retailers. The amount sold will be in accordance with the demand prevalent. These retailers will finally sell it to the end consumers.
Thus it can be inferred that from factories to consumers, a chain is formed. This is called a chain of markets or market chain. It can be better understood from the flow chart given below:
Question 4: ‘All persons have equal rights to visit any shop in a marketplace’. Do you think this is true of shops with expensive products? Explain with examples.
Answer: Yes, it is applied to all the shops with expensive items. Even if the consumer cannot afford to buy them, the shopkeeper is still obligated to show the items up for display. The shopkeeper under no circumstances may force the consumer to buy the item presented. That decision is solely left to the discretion of the consumer. An example of this can be given below:
Example: Sujata and Kavita went to Anzal Mall for a casual visit. While exploring their way through the mall, they enter a shop which is selling branded clothes. Although they marvel at the quality of the clothes, the outlandish price tags on them made them move away to a different shop selling the same type of clothes at a reasonable price.
Question 5: ‘Buying and selling can take place without going to a marketplace’. Explain this statement with the help of examples.
Answer: This is the age of the internet. It has changed the mode of everything. We can now make online purchases with the help of credit cards. We can place orders through the internet and the goods are delivered at our places.
Example: Over the internet, we can visit the concerned website and order the product.
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